The International Federation of Accountants has published a ‘Small Business Continuity Checklist – How to Survive and Thrive Post Covid-19’.
Small businesses have been disproportionately affected by the COVID-19 pandemic. Most organizations worldwide are small in size, and the importance of small businesses to the global economy is indisputable.
COVID-19 containment measures severely impacted cashflows, disrupted supply chains and put small business survival at risk on an unprecedented scale. Governments worldwide moved quickly to deploy supportive measures for small businesses and entrepreneurs to help them maintain short-term liquidity. However, many are still struggling.
Small- and medium-sized practices (SMPs) have in-depth knowledge of their clients and provide vital guidance for navigating these uncertain times. Research indicates the business advice provided to small businesses from their professional accountant is associated with improved rates of survival, growth, improved decision-making procedures and superior financial performance.
Poor financial management is a leading reason why businesses fail. The Checklist covers key financial management and strategic management tasks, helping businesses to proactively identify and consider essential and timely information.
Many businesses are looking for the “next normal” and a new approach to resilience. Early on, the pandemic accelerated digitization and transformed small businesses responding to drastic consumer behavior shifts. A small businesses ability to survive the current environment, and thrive in the future, will be greatly strengthened by support from their professional accountant.
The checklist is included on IFAC’s dedicated COVID-19 web page with many other useful resources.