What’s next: accounting for the next stage of COVID-19
You don’t need yet another article that talks about how things have changed over the last few weeks. About these ‘uncertain times’. Or how businesses everywhere are adapting to ‘the new normal’.
The coronavirus crisis has tested everyone. But now that you have adapted to the initial disruption, you need to shift your gaze—away from just getting through each day, to thinking longer-term.
Back to building your accounting firm, developing your staff, honoring your values, and continuing to provide clients with the vital assistance they need.
In reality, no one knows what is going to happen next. You don't know what the economy is going to be like. You don’t know what restrictions and contingencies will be in place, and for how long. And you don’t know how your clients will fare.
Which is why it is understandable if you are unsure how to get ready for the next phase without a reliable projection of what is going to happen.
Strategic planning even in uncertain times
While things are uncertain, you can still put a strategic plan in place. The right place to start is to evaluate your plan for 2020. By analyzing what has changed, you’ll have a good sense of the adjustments needed in your plan going forward.
As a leader in your accounting firm, you’ll be simultaneously handling the direct issues stemming from COVID-19 and planning for the future.
If you developed a plan for 2020, you don’t need to abandon it. A goal of a plan in the first place is to set targets, but you always maintain the ability to adjust it.
Revising your plan involves two elements. First, you need to ensure survival under the worst-case scenario circumstances. Second, you need to plan for growth while maintaining consistency with your values.
Planning for survival
In order to build a strategic plan, you’ll need to run multiple scenarios. Entrepreneur and investor Mark Cuban said recently that he advises businesses to “plan for the worst and hope for the best.”
Your strategic plan will include your financial picture, as well as your team infrastructure and client growth strategy. As you plan for survival, it’s useful to take a pessimistic approach. Think through what-if scenarios like losing clients or stalling in growth.
This is hopefully not what is going to happen, but gives you the ability to make decisions if the economic recovery is slow.
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