The COVID-19pandemic has wreaked havoc on America’s economy this year. Millions of Americans are still unemployed, even after some economic recovery has occurred, and businesses have lost millions to billions of dollars. With no end in sight to the pandemic, Americans are hunkering down for what could be a difficult winter, and business owners are wondering what steps they can take to ensure their companies remain viable for the foreseeable future.
Here are a few specific examples of some of the financial impacts of COVID-19 on employers this year:
•Changes to leave policies: Taking the pandemic into consideration, businesses have had to drastically overhaul their leave policies, allowing employees to stay home and not work if sick, or if caring for a sick person. Policies have had to become more flexible and non-punitive in nature than ever before, meaning businesses themselves have had to evolve to become nimbler to accommodate those situations without suffering financially.
•COVID coordinators: Many businesses have experienced such significant effects from the COVID-19 pandemic that they’ve hired people specifically to coordinate COVID responses. This is much more of an issue for larger employers, but it does represent a financial impact—it’s one more employee that you might not have had to pay in normal circumstances.
•Loss of customers or clients: Certain types of businesses have seen significant drops in revenue due to their industry being more heavily affected by the pandemic. Any types of businesses in the areas of dining, hospitality or entertainment, for example, have been significantly affected. Loss of revenue means a need to find ways to shed costs, which often leads to layoffs or furloughs.
•Changes to business operations: Businesses of all types have had to adjust to the COVID reality, which means shifting how they do business and serve their customers. This could mean a shift to remote work, or changing in-person operations to put more of an investment in and focus on sanitization and safety. These changes don’tjust happen automatically—they take time and money to make effectively and reliably.
With so many changes to make as a response to COVID and so many different ways the virus is financially affecting business owners, it is important to have a team of financial professionals at your side to help your business stay viable and to keep your books in order.
MCG Solutions is pleased to help clients in a wide range of industries adjust their bookkeeping and finances to account for these changes to business operations, and to keep you organized in a trying financial time. For more information about our services, contact us today.