Tael Solutions West Auckland Accountants Tips - Managing your business towards recovery

COVID has impacted businesses across NZ, many were not ready for the accelerated digital disruption, the drop in sales or how to keep track of their accounts and the impact to livelihoods.

At TAEL we work with our clients to help them through this disruptive period by understanding the impact to them and implementing a business plan, a budget, and what drives their business to be successful now and in to the future.

Business planning is critical when in recovery mode, we believe every small business should have a short-term business plan.

When putting together the plan you need to think back and consider what has worked well and what has not in all aspects of your business, including:

• Staffing
• Client relationships
• Financial results
• Operations

It is also a great time to reflect on where your business revenue comes from:

• Referrals, word of mouth, website, marketing campaigns, social media?
• Of those leads, how many did you convert into clients?
• What did they spend on average?
• One-off purchase or a recurring purchase?

Looking at where your business comes from and how many buy your services or products - in conjunction with your key numbers and business drivers - is critical to your continued growth and success. The business plan is a great tool to keep you focused on what is important and to guide your daily and weekly activities.

The purpose of the budget is to look at your trading in previous years and consider the impact of the information you have identified in your business plan. The budget then provides you with a goal, for your sales and for managing your expenses so you can see where you need to focus your time and energy.

The finances of small businesses and their owners are closely intertwined. Rather than just focusing on business finances, business owners need to understand and manage this link between the business and personal finances.

If you would like to understand how we can help you through this period, please feel free to get in contact.