Businesses of all sizes have faced disruptions to operations due to COVID-19, with many experiencing unprecedented challenges as a result.

But small and medium-sized enterprises (SMEs) that are nimble and flexible will be able to navigate these uncertain times and strengthen their business resilience.

Here are four tips to reshape your company and preserve business continuity during the COVID-19 pandemic:

1. Focus on business continuity

Businesses should review financial and operational risks and react swiftly where needed.

Any business plans and budgets affected by the COVID-19 crisis should be revised quickly, taking into account factors like the potential financial impact and the potential duration of the crisis.

Companies should watch out for cost fluctuations and respond to their impact on margins, while also tracking financial pressures placed on customers, suppliers and other parties.

Management accounting, reporting and analysis can help businesses understand their current position, allowing owners and managers to make informed decisions.

2. Review your cash flow

Liquidity will be key during this time, so businesses should carefully monitor short-term cash flow.

Companies will need to review current working capital and keep a close eye on receivables and inventory build-up.

Businesses should also continue regular communication with suppliers to spot potential risks and address them early.

3. Communicate with stakeholders

As businesses reshape their strategy, it’s important to maintain regular contact with all stakeholders.

Companies should engage their customers and employees with clear communications, as well as suppliers, contractors, creditors and other relevant parties.

For example, customers should be informed about any changes to products or services, while employees should be kept in the loop about any changes to operations.

4. Make the most of government assistance

The federal and state governments have established financial assistance measures to support businesses through the COVID-19 pandemic.

These measures include the JobKeeper wage subsidy payments and boosts to cash flow for employers from the federal government, as well as payroll tax payments from the Victorian government.

Businesses can find more information about the available government assistance related to COVID-19 here.

Take action now

While it’s too soon to predict what will happen with the COVID-19 crisis, businesses should be ready to review and adjust their strategies once the outbreak is brought under control.

If you require management accounting, reporting and analysis to help reshape your business plans, then LDB’s business advisory team can help.

There are a range of ways that LDB can support your business during this crisis, with accounting, audit, wealth, superannuation and property teams on hand to assist where needed.

If you need support with your business strategy, please do not hesitate to call (03) 9875 2900 or send us a message via the contact form below.