How CFOs can Help you Rebuild your Business Post Pandemic

Looking after the financial aspect of a business is never an easy task. There are always decisions to make surrounding growth, investment, and funding, and making the wrong choice could break a business. This is why CFOs are hired, for their expertise and financial management skills. The unprecedented positive and negative effects of Covid 19 on business have made it difficult for many businesses to regain their financial standing, but a CFO could help.

Looking at the positive and negative effects of Covid 19 on business

The first thing a CFO will do is to look at both the positives and negatives of the pandemic. Most businesses will only see the negatives, and whilst this is justified, there’s every chance there’s a silver lining to be found in how you rebuild your business after covid, you just need the right person to come along and find it. A CFO could be that person.

The pros and cons of the pandemic’s effect will vary from business to business, but most will be able to come up with a handful for each, and a CFO will be able to identify the pros and use them to outstrip the cons. For reference, here are some of the positive effects covid has had on businesses and how a CFO might look at them to help you rebuild your business post pandemic:

1. Flexible working

Pre pandemic, flexible working was a pipedream for most businesses. It wasn’t commonplace and therefore the innovation to allow for permanent remote working on a large scale was lacking. Following the pandemic and the forced closure of most workplaces, we saw massive strides being taken to allow for remote working at the drop of a hat. The great thing about flexible working is that it allows you to save money on commercial rent, and a CFO will be able to guide you on how better you can invest the huge amounts of money saved from rent to grow your business.

2. High employee retention

As a business owner, you’ll know the struggle of when an employee decides to move on to another job, and any CFO you bring in will tell you how expensive it is to facilitate a high staff turnover. With the pandemic highlighting new working methods and seeing a lot of businesses changing to flexible working, there’s every chance that you can retain more of your best staff members and reduce recruitment outgoings by adopting the post pandemic way of working.

3. Diversified way of thinking

Another major benefit of the pandemic on business is that it forced many business owners to rethink how they operate and diversify their revenue streams. For example, restaurants that were once only dine in had to switch to deliveries to stay afloat. Whilst there is now the option to return to service as it was pre covid, many have found that through forced diversification, they’ve been able to bolster their revenue and grow where they otherwise may have stayed stagnant.

Of course, whilst the pandemic has brought around some positives for businesses, it has brought huge problems, and they can’t be ignored. Some of the most devasting effects on businesses include:

1. Incurring huge debts

Many businesses, especially B2C businesses, had to cease trading altogether. For those in the gig economy and hospitality, this led to a complete shutdown of their income stream, but bills continued to pile in. Many businesses had to take out huge loans just to stay afloat, and those loans now need to be paid back. This is one of the most overwhelming challenges for businesses now post pandemic, but it’s one that a qualified and experienced CFO will be able to help with.

2. Employment gaps

Whilst the option to retain staff is there, many businesses struggled during the pandemic due to the phenomenon now known as ‘The great Resignation’. This saw a huge number of people reevaluate their lives and quit their jobs, leaving many businesses in the lurch. We now have a situation where there are more job vacancies than candidates, and competition to recruit is hard. As mentioned, recruitment is expensive and having staff shortages can limit your business immeasurably, posing its own set of issues.

How can CFOs help to rebuild business post pandemic?

So, with the pros and cons in mind, what can a CFO do to help you get your business back on track now that the pandemic has begun to subside?

Spend available money more wisely

What many businesses found during the pandemic was that they had to rely on their financial reserve, and for this, they had to turn to whoever was in charge of their accounts. Not every business has a CFO, and this means accounts and books can be messy and unclear, making it harder to know what cash is available and where it needs to be spent.

In contrast, those with a CFO found it easier to navigate their covid finances thanks to the in depth knowledge their CFO had. If you don’t yet have one, it’s worth hiring a CFO purely so that you have someone who is completely accountable for your finances and who can retrieve data quickly – after all, the pandemic showed that time really was of the essence.

Respond, don't react

There is a difference between responding to a situation and reacting. Reacting is unplanned, often rash, and rarely well thought out. On the other hand, responding is more in depth, rational, and strategic. A CFO is trained to respond using the data and knowledge they have, so businesses with a CFO should find that they’re able to bounce back in the long term rather than relying on short term solutions to long lasting problems.

So, with the pros and cons in mind, what can a CFO do to help you get your business back on track now that the pandemic has begun to subside?

Spend available money more wisely

What many businesses found during the pandemic was that they had to rely on their financial reserve, and for this, they had to turn to whoever was in charge of their accounts. Not every business has a CFO, and this means accounts and books can be messy and unclear, making it harder to know what cash is available and where it needs to be spent.

In contrast, those with a CFO found it easier to navigate their covid finances thanks to the in depth knowledge their CFO had. If you don’t yet have one, it’s worth hiring a CFO purely so that you have someone who is completely accountable for your finances and who can retrieve data quickly – after all, the pandemic showed that time really was of the essence.

Respond and not react

There is a difference between responding to a situation and reacting. Reacting is unplanned, often rash, and rarely well thought out. On the other hand, responding is more in depth, rational, and strategic. A CFO is trained to respond using the data and knowledge they have, so businesses with a CFO should find that they’re able to bounce back in the long term rather than relying on short term solutions to long lasting problems.

CFO services at Accountancy Cloud

If your business is trying to bounce back after covid, there’s every chance money is tight. This means not everyone can afford to bring in a CFO full time, but everyone could benefit from having one. In this case, Accountancy Cloud can help. We provide CFO services as and when you need us, including during this critical period post pandemic.

Our team of experts can help you navigate the tricky waters of post covid business opportunities and help to elevate your business to where it was pre pandemic and beyond. We will look at your data and use it to curate strategic, long term plans for success. To find out more about our CFO services, please get in touch.