Worldwide, small businesses were hit the hardest by the economic fallout caused by COVID-19 in 2020. As mandatory shutdowns ground world economies to a halt, small businesses have been rapidly going bankrupt as business owners have less reserve capital than major corporations to stay afloat. Did you know the average small business only has 27 days of reserves available before they go bust? Without a lifeline from governments, small businesses have no choice but to micro-manage their finances and find where they can save money within their business operations. The good news is that businesses impacted by COVID-19 can save money with Excel. That’s right, Microsoft Excel is a powerful tool that will come in handy more than ever. There are several ways businesses impacted by COVID-19 can save money with Excel.
Accounting and Finance
Most accountants and finance professionals take advantage of Excel to create future forecasts for businesses and identify opportunities within a company’s expenses to find new ways of saving money. You as a business owner can do the same. One item that is important for business owners to navigate the COVID-19 crisis is the usage of a cash flow forecast spreadsheet. This sheet will help you determine your company’s net amount of cash to continue operating your business. Another tool that can be created in Excel is the profit and loss statement. This will help business owners understand the net difference between what is coming in and out of the business. By using Excel, from accounting and finance within the business, owners can get a deeper understanding of the current state of their business and where they need to cut costs to meet the minimum requirement for staying afloat.
HR and Payroll
Small business owners make up a large majority of employers worldwide. Owners will need to make smart but difficult decisions when considering how to save money regarding their HR and payroll expenses. By plugging in information such as employee’s wage and tax information vacation, overtime, and sick pay details, you can calculate your total monthly expenditure on this category and understand how long you can keep certain employees on payroll during the pandemic. Also, you may need to make the unfortunate decision to cut payroll by a certain percentage or worse, let a certain number of employees go. You can use Excel to calculate the net total savings to the business from different scenarios.
Inventory and Equipment
As the economy ground to a halt worldwide due to COVID-19, many businesses have additional inventory on hand that cannot be sold. Without customers visiting stores, the businesses are laying stagnant. With Excel, business owners can keep track of their inventory levels and reduce ordering on products that are in excess. By determining when to order and what to order, business owners can determine how to save money on their inventory management.
Alternative Solutions
Outsourcing to an expert provides an easy way for businesses to boost their productivity and efficiency. AM 18 Consultancy will handle all your Microsoft Excel needs from A-Z. Free up your time by leveraging our highly experienced consulting firm and allow us to handle developing powerful reports, creating functional tools, and making your data work for you.
What are you waiting for? Find out more about how Microsoft Excel can be tailored for your project management needs.
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