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Long before the COVID-19 health crisis, financial administration was already one of the major challenges for Canadian business managers. In the past few months, many companies have had to review their priorities and rethink their ways of doing things.
With accurate and up-to-date information, decision-makers can keep their plans for the future on track and prepare for headwinds. This will be especially crucial as Canadian businesses navigate recovery in the uncertain months ahead.
Here are three reasons to optimize your finances and help you deal with this new business reality:
1. Accessing cash
The situation caused by pandemic has highlighted areas of improvement in the way many small businesses in Québec handle their finances. Often set aside for lack of time or knowledge, cash flow management is particularly critical when applying for an emergency loan or other support measures related to the crisis.
To keep their business running and carry it forward, many entrepreneurs may find themselves having to take a step back during this stressful time to get a clear understanding of their financial situation and evaluate their contingency plan and develop predictive scenarios. This will allow them to put their best foot forward to obtain financial assistance quickly from their bank or government and ensure a favourable business recovery.
As most business managers have recognized, sound daily financial management has become increasingly important in these challenging times.
2. Rethinking business models
The message from Québec leaders is clear: to remain sustainable, businesses will need to adapt to the new realities brought on by the pandemic. In a time of social distancing, virtualization and supply chain disruptions, many companies will have to rethink their business model from the ground up to be profitable in the medium term.
Entrepreneurs will need to ask themselves what operations, products and services are actually profitable. They’ll need to monitor their results very closely, evaluate returns on investment and be ready to quickly adjust their strategy. Having a clear vision of their finances will be critical in this context.
3. Securing business partners, or finding new ones
The entrepreneurial landscape will have changed completely as a result of the pandemic. There will be mergers, acquisitions and strategic alliances as entrepreneurs strive to keep their businesses afloat. To ensure transparent communication and bring deals to the closing table, entrepreneurs will need to provide accurate numbers to current or future business partners.
Entrepreneurs should therefore start implementing sound financial management practices right now. Simple online technologies can help those who lack time for accounting tasks make sure they have proper systems in place to manage their budget.
Our experts offer an affordable, cloud-based solution, supported by our affiliate Operio, to help entrepreneurs bring their vision for their business to life.