How Financial Consulting Can Help Your Business in the Wake of COVID-19

April 24, 2020

COVID-19 has forced many “non-essential” businesses to shut down, raising questions about their financial futures. If your business has been affected by the coronavirus, consider hiring a financial consultant to help you determine what steps to take next. Your Los Angeles accounting service offers financial analyses and consulting to assist you. Here, review how financial consultants can help you navigate this trying time. 

Identify New Business Goals

Work with a financial consultant to set new goals for your business, such as making inventory shifts that increase revenue. The financial expert will also help you plan for different scenarios in light of cash flow reductions, such as deferring commercial building rent or mortgage payments until you can resume normal business practices. Your new business goals may also require utilizing e-commerce or making delivery services part of everyday activities. 

Reduce Payroll Expenses

Re-evaluate your payroll in light of lower revenue streams and current bills. As difficult as it can be, now is the time to consider cutting work hours, temporarily laying off non-essential employees or those with less seniority, or putting off new hires. Hopefully you can keep most of your team employed, something a Los Angeles accounting service will help you determine. For example, you may be able to eliminate expenses that are luxuries instead of necessities to retain more employees.

Find Other Ways to Cut Back

Take advantage of financial consulting services to find other ways of reducing expenses so you have more money for bills and employee paychecks. For example, you may require fewer commercial vehicles because of COVID-19 to reduce transportation expenses, or need to switch supplies to enjoy bigger discounts. If the stay-at-home order has made you realize you don’t need office space, give it up to save money on rent and related expenses such as utilities and exhaustive insurance coverage. 

Increase Client Loyalty 

Help your clients stay loyal to your business making it clear you are here to make their lives easier. Offer discounts and sales, or assorted free gifts as thank-yous for their patronage. You may find your business makes up the discount or freebie difference because your clients are sticking with you and encouraging their friends and family to utilize your services or buy your products. 

Discuss your financial goals with the Encino tax consultants at Wallace & Associates today.