Small to medium-sized businesses are the heart of the North American economy. Most companies in the United States and Canada are small-sized and are the biggest employers and tax contributors. Unfortunately, the COVID-19 pandemic has hurt the revenue of many such companies.
With your small business more vulnerable to financial losses than giant corporations, you must find creative ways to improve your revenue. Here are some essential tips that can help you during this time:
1. Hire an Excellent Small Business Accountant
Sometimes, you must spend money to make money. With the help of an excellent small business accountant — your company may be able to slash the large taxes that eat into its revenue. A good team should also provide the following services to help you.
- Business Consulting: They may help you with your business plan, facilitate a merger, prepare for an acquisition, or set up a new business.
- Business Registration: If you want to hire full-time employees to capitalize on new opportunities and increase your revenue, you must register your business with a professional accountant’s help.
- Business Accounting Services: When you let professionals organize and balance your financial statements, you can focus more on profitability.
- Bookkeeping: The right accounting firm can track your earnings, expenses, and other financials with timely reports. You can use these reports to find critical efficiencies and cut costs.
- Payroll: A small business accounting firm can help you stay on top of salaries, which are a key component of your operational costs.
2. Adopt Good Invoicing Practices
It’s challenging to collect payments during the COVID-19 pandemic from consumers and other businesses. A great way to improve your accounts receivable turnover ratio is to adopt excellent invoicing practices.
- Always use a watertight contract with your clients.
- Send invoices and reminders on time.
- Ensure that invoices are concise and correct to avoid unpaid dues.
- Double check to ensure that your invoices are headed to the right department.
- Incentivize timely payments with early payment bonuses and late-payment fees.
- Maintain a firm and professional attitude with your late-paying customers.
- Be prepared to negotiate with delinquent accounts to avoid short and long-term disruptions.
In addition, extend credit carefully. Check references and credit reports if possible before starting business relationships. If your late-paying client throws up red flags, then act quickly to recover your revenue.
3. It’s Time to Go Digital
With the pandemic forcing businesses to work remotely, it may be time for your business to go completely digital if it suits the nature of your industry. For example, even the best accounting firms offer digital services.
Studies show that working from home often improves company morale and productivity. Also, remote working helps lower operational costs such as rent, energy bills, and transportation expenses.
Aside from working digitally, you can try to offer services digitally by revamping your website, developing an app, partnering with ecommerce companies like Shopify, and more. You may also need to think outside the box to generate revenue.
For example, if you run a hospitality business, then consider partnering with a food delivery service like Uber to use your kitchen as an online restaurant.
Although the COVID-19 pandemic is challenging for any small business, with creativity, discipline, and the right professional help, you may find ways to enhance your revenue.