The whole world is under the cloud of COVID-19, more so Malaysia with the sudden spike in infection cases. With the government declaring a movement control order on 16 March 2020, countless SMEs are likely to be caught off guard due to their lack of resources and facilities to continue functioning under these circumstances.
It’s Imperative that SMEs are always prepared to deal with lockdowns, shut down and other emergency situations in the future to avoid any critical disruptions in their day-to-day operations which could adversely impact revenue. Therefore, it’s important for you to, first and foremost, know how to maximise your cash flow.
The Cash Flow Issue
Now that the government has postponed tax and SST payments, you can take advantage of this situation and either write into the tax body to appeal for a revision of your tax estimates to reduce tax instalment. or utilise government initiatives to support your business. You can also minimise your stock overflow and start purchasing them more cautiously to avoid over-committing funds.
Consider going to the bank to discuss options such as deferment of your business loan instalment and other banking facilities that you are currently utilising. We have helped some of our clients with successful appeals and you might be surprised that some banks have shown support to SMEs during tough times.
Creditors are another area that you can work on. Discuss with them on appropriate payment arrangements and work out a win-win solution for all. While we are on the subject of payment, you can consider speaking to your premises’ owner to review your tenancy agreement to minimise your monthly rental commitment.
Insurance policies too are an option. Sit down with your insurer and review your policies to maximise protection while reducing costs. Unfortunately, many companies do not practise reviewing their insurance coverage regularly. After looking at all the outward options which are not always in your control, it’s time to look inwards which is definitely in your control.
Minimise unnecessary business costs and maximise the use of your available resources as best as you can. If you need help with this, our CFO Support Services (CSS) provides a wide range of comprehensive advisory and assistance at all times. Regardless of whether times are good or hard, we are fully equipped to facilitate you for all the aforementioned steps.
Change The Way You Do Business
When uncertainties strike, it’s tough for you to go about business as usual so it’s time to think about how to change the way that you do business. Begin by digitalising your operations processes starting with your human resource department. For example, if your HR department is affected, they can still continue to prepare the relevant HR duties remotely by using the cloud.
With cloud services, you can access your data and operate them anytime from anywhere. With facilities such as Xero accounting and HReasily payroll software, you can easily work from home. These solutions are not complicated at all. It’s user friendly and efficient especially in emergency situations like what we are dealing with right now.
You should also seriously consider backend office services, such as payroll, accounting and financial processes to minimise the use of manpower while achieving optimum results. One of the best ways to automate your company’s processes is by using the Enterprise Resource Planning system to improve workflow efficiency and enable effective decision-making process.
How We Can Help You
Cheng & Co’s CSS was created as a value-added service for our clients. It requires a minimal fee but addresses major issues. SMEs can now get CFO level advice and guidance concurrent with the needs of your business.
Just like having a CFO onboard, the CSS will help make crucial financial decisions which will end up saving SMEs a lot of time and anguish. We can help you deal with issues that are highlighted here and more.
We can help look into your tax estimation especially if your business is in industries such as tourism, hotels and F&B that are heavily impacted by the COVID-19 situation. We can also address your bank loan issues, be it applying for one or deferring your current loans.
Your accounting. financial management and HR issues can also be taken care of, making your role as a business owner much easier. Our goal here is for your business operations to run smoothly and every function working seamlessly with our timely and effective support services.
This gives you the peace of mind that everything is in good hands and allows you to be in a position of strength to continue building your business.
For any enquiries, kindly contact us through email@example.com