COVID-19: 5 key steps for accountants to guide businesses through the crisis

Accountants – many of whom are small practitioners themselves – are trusted advisors for Small Businesses, Freelancers, Startups, and Contractors. The corona crisis is a critical time where businesses need all the guidance they can get to navigate through the storm.

Accountancy practices are helping businesses navigate through these difficult times.

Following are some of the services and options Accountants and Accountancy practices are giving to businesses:

1. Informing clients of all the aid options

Accountants should and most are aware of all the financial and other forms of aid provided by the national government. Accountancy bodies are coming up with the best practices for countries to assist them in policymaking.

2. Applying and documenting the available aid for your clients

Identify clients in high-risk sectors and those that would benefit most from public support measures. Help them by:

• Advising on, and guiding through, all the claims available to them
• Identifying options to diversify their business
• Accessing emergency financing provided by governments
• If possible, consider re-negotiating your fees and payment schedules with them

3. Help with immediate business survival

Accountants are and should inform clients of immediate measures that might make the difference between survival and collapse. And help them implement these, for example, to:

• Access the reliefs on offer
• Review and adjust their cash flow forecasts
• Consider the business model 
• Understand their supply chains and plan for the supply of products and services to get disrupted.
• Check their insurance and whether they are eligible for a claim for any financial losses.
• Communicate with their staff to discuss the possibility of short term pay cuts.
• Ensure that their financials are up to date
• Renegotiate their payment terms with suppliers and help them communicate with their bank should they be unable to meet loan commitments.
• Negotiate with their debtors, for example, to offer discounts in exchange for early payment.
• Continually monitor the situation 
• If all else fails, consider the insolvency options as it may be possible to rescue viable businesses by debt reorganization rather than be forced into full liquidation.