Pauline Smith, managing director of Greenwave Accountants in the south of the island, has some tips for businesses during the Covid-19 crisis

We are keenly aware that there is an enormous amount of worry and uncertainty in the business community.

Many businesses are facing little or no income in the coming months and while government support will be welcome for those in industries that qualify, a certain amount of adjustment will be essential for all of us.

Practical tips to help business owners through this challenging time :

’Cash(flow) is king’ has always been an essential business mantra and never more so than in the current climate.

Recession proof businesses have historically cut down to the bare minimum and protected the core business.

Only pay out for the bare minimum to keep the business functioning.

Check all of your subscriptions to see if you can cancel any that you no longer use or need, often software subscriptions continue even if no longer being used.

Recalculate your minimum monthly outgoings to give you an accurate snapshot of the income currently required to meet those expenses.

If you don’t believe that income is possible - flex the outgoings - would your staff be prepared to work reduced hours or postpone their salary payments?

Remember if making staff redundant that you will need to pay their notice period, accrued holidays to end of notice period and any statutory redundancy pay (if due).

In addition, benefits (unless precluded in the contract of employment) will also be due up to termination date/end of notice.

Prioritise required payments - VAT is automatically deferred, speak to the tax office regarding PAYE and NI payments and personal tax payments and government regarding business rates.

Paying a supplier who relies on you for their food bill will need to be prioritised above others.

Organise payment plans over realistic timescale with outstanding creditors, landlord, tax and VAT and continue to communicate and adapt plans as required.

Is it possible to ask for monthly payments for large one-off expenses or can you source an alternative supplier or version?

Be innovative in how you provide your services and who you deliver them to. Can you deliver your services through technology?

Think out of the box - can you do something different using the assets and skills you have?

Think about the needs of people over the coming months - how is the market likely to change with the current/future restrictions and can you access those requirements.

Quieter times can be used wisely for business and marketing planning, ensuring you are positioned ready to go as soon as restrictions are lifted.

Keeping busy and having routine can help get you through each day, it may sound glib but catch up on all those administrative tasks we all put off.

In regard to personal finances you may need to research and organise mortgage and loan repayment holidays.

Remember to prioritise not just your physical but also mental health. Entrepreneurs are inherently adaptable and flexible but even the best of us can fall prey to anxiety. It is really hard as a business owner to remain calm and strong for staff and customers - the key is to remember we really are all in this together.