5 Financial Tips for Efficient Business Operations post COVID-19.

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  • by July 20, 2020

COVID-19 is stressing the finance functions in several ways. This article includes recommended actions finance leaders can take to mitigate the disruptions and get their teams working at peak capacity.

1.Improve Credit Management:

When entire Market will open post COVID-19 this will be very critical and every company will be looking to make more and more sale and stabilise the loss occurred during Pandemic time. Many companies take orders and ship goods without checking customer credit because sales people get paid for making sales, not for collecting bills. Yet delays in credit checks can cause a company to lose money by increasing its bad debts. In such cases, it is advisable for a company to switch to a software package that allows credit checks to be made during order entry. If a company's current software already permits this, CFOs should encourage greater compliance with this procedure. . The credit manager can then decide whether to release or cancel orders from these customers.

2. Clear Accounting and Compliance Backlogs:

If your accounts are not kept up-to-date, you could risk losing money by failing to keep up with late customer payments or not realising when you have to pay your suppliers. Using a good record keeping system will help you to track expenses, debts and creditors, apply for additional funding and save time and accountancy costs. Failing to meet deadlines for filing tax returns and payments can incur fines and interest. These are unnecessary costs that can be avoided with some forward-planning.

Keeping accurate records saves your business time and money and you can be confident that you’re only paying the tax you owe. Therefore, it’s important that you meet your obligations. If you want to reduce cost in your Accounting and Compliance backlogs and don't want to hire Full time source then you also can outsource the same.

To clear Accounting and compliance Backlogs you can reach out to us on 9033267276 or WhatsApp us from here.

3. Negotiate with Suppliers:

Many businesses has changed various Policies for smooth functioning of Business post COVID and many of them have changed business model. So it will be very crucial to look into the agreements previously entered with Suppliers. These can be service contracts like Accounting or Marketing agencies or Product Contracts like Raw material and Office supplies. Requests to change current contracts or to get out of existing obligations are coming your way, if they’re not already there. Your initial reaction to a change request is to assume the defensive position and protect what you have. My advice? Be curious.

These are extraordinary times, and while there’s a common theme around COVID-19, don’t assume you know all of the underlying reasons for the requested change. Ask questions. Seek to understand what’s happening in their business and how this crisis is impacting them. The more information you can gather — identifying what’s most important to them — the better you'll be able to create a viable solution. 

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5 Financial Tips for Efficient Business Operations post COVID-19 | accountingbaba | Ketul Patel

4. Prioritise Outstanding Payments:

If you’re out of work as a result of the coronavirus pandemic, you’ll know that doesn’t mean that the bills have stopped coming in. Millions of Business are faced with making some tough choices, like determining which bills they should pay and which they should temporarily put off. It’s a very difficult situation, and you’re going to need to prioritise. When trying to determine which payments to make, every Business needs to ask themselves “whether they can survive without” the product or service they’re paying for.

5. Restructure your Outside Funds:

Your business might have got funds from various Financial Institutions for different purpose at different time. Try to reach out to your bank for rate negotiation or hire a consultant who can help you to restructure your funds with minimum cost. Prior to the outbreak, the financial institutions in India were already reeling under the delinquency of loan defaults. This problem has prevailed despite various schemes and measures introduced by the RBI from time to time. Interestingly, the measures have been for both the financial institutions as well as the defaulting entities. Post covid, the challenges would be multifarious.

Do join our Whatsapp community to get regular Incometax, GST and MCA updates from here. 

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