The effects of COVID-19 are obvious: disruption of supply chains, closure of schools and workplaces, restricted travel and many more. These hurt businesses worldwide. While the effects of COVID-19 may be inevitable, you can mitigate its impact on your business.
Here are 6 actions that your business can take to ensure that you withstand what is ahead.
Check Your Team’s Locations and Travel
Your team is your priority. The first action you should take as a leader is to establish your team’s position. Take note of the following:
- How many staffers are in affected jurisdictions?
- Can they work from home?
- Are there any who need repatriation?
- What’s the impact of rescheduling or cancelling travel plans?
Revisit Business Continuity Plans and Check for Possible Weaknesses
Don’t assume that existing plans are sufficient to deal with the threat. Tweak them to reflect the specific challenge and address these questions exhaustively. For example, do you need to increase the number of employees who work remotely? If yes, do you have sufficient infrastructure? Evaluate strategies on how you can reduce face-to-face interactions as much as possible.
Also, check for potential weaknesses. Take a look at the position of vital units in your business, such as call centres, shared service centres, and finance teams, and consider if they are vulnerable to the spread of the virus. What would be the impact of outsourcing these vital units, for instance, to an accounting firm in Singapore? Ackenting Group offers accounting and bookkeeping services to help keep your business running and prevent any risk of operations halting. Our experienced team of accountants are highly knowledgeable in keeping up with changing demands to guide you through this challenging period for your business.
Make a Communication Plan
Although the COVID-19 is spreading fast, hysteria and misinformation are also spreading at alarming rates. Stakeholders of the business, shareholders, lenders, employees, suppliers, and customers look to you for reassurance that their interests are protected. Don’t wait for information vacuums to emerge. Make plans for the dissemination of accurate and consistent information regularly to reassure your stakeholders.
Proactively Manage Your Financials
The impacts of the COVID-19 crisis affect companies’ finances, irrespective of the size of the organization. Businesses that have stable finances are best-positioned to use these resources to stabilize operations.
At Ackenting Group, we can help maximize your working capital and leverage on good cash flow to stabilize your operations. Knowing your financial health and status is crucial to help your business bounce back when the situation is contained.
Review Your Supply Chain
Begin with your most crucial products. Are there any vulnerabilities? Look beyond the first-level and second-level suppliers. If possible, go right to the basic units (or raw materials) and review what would be the impact of a shutdown. If you intend to shut down your supply chain, consider if you have alternative suppliers to rely on. Be sure to look ahead at your resources so it would not pose a risk on impacting your operations.
Simulate Worst-Case Scenarios
You should foresee your business being disrupted by the COVID-19 crisis in different ways with a level of certainty. Will you be prepared to deal with the business and cope with disruptions? Your contingency plans will also need to consider the long-term implications, for instance, on your cash flow.
Reach out to an accounting firm in Singapore like Ackenting Group, and we can help your business simulate any worst-case scenarios and prepare financially for such an occurrence. We take the time to fully understand your business situation and provide tailored solutions to ensure your business will remain in good shape.
Keep an Eye on Other Risks
COVID-19 is a significant threat to businesses globally, but it’s not the only one. Many other threats are facing your business. As you take these actions to mitigate the effects of COVID-19, you should always keep an eye on other risks such as cyber threats and keep them at bay.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
