Safeguarding your small business from natural disasters
Natural disasters are, by their very nature, an unavoidable and often unpredictable facet of business. For larger companies with an international network, this may be troublesome at worst. However, for small business owners, the response to a natural disaster could be make-or-break.
So, given the recent flooding in the North East, how can you safeguard your financial stability and continue trading as effectively as possible in spite of a natural disaster?
Insurance
In order to ensure that you are prepared for almost any eventuality, you should make sure to check that your insurance package will provide comprehensive cover. Also, any key contracts must include the flexibility to adapt and a disaster plan should be procedurally documented.
Document recovery
Most crucial to a speedy recovery after a disaster is the ability to recover financial and procedural documents by storing them in the Cloud. With advanced online accountancy software such as Xero, your financial details are stored out of harm’s way, allowing you to pick up where you left off as soon as premises are secured.
Costs consideration
Once you have the ability to resume operations, your disaster plan should next take stock of real-time costs to your business. Costs to consider might include:
- repair bills
- lost trading hours
- lost man hours through absent staff
- damaged stock
All these points should then be factored into a revised cash flow prediction.
With Xero, your accountant will have real-time access to your complete financial record, enabling them to provide timely information and financial support to ensure that this revised cash flow is accurate and can help your business get back on its feet in the shortest time possible.
If you’re looking for more expert accountancy advice, why not get in touch with our friendly team today?
