Like many of you, I’ve been stuck at home trying to rethink my daily life under the new threat, stress, and uncertainty of the COVID-19 pandemic. Questions about how we shop for groceries, how our kids continue to get their educations, how we safely socialize, and how we don’t lose our minds during this time period have challenged us to find answers daily.
And we’re the lucky ones – those of us with jobs and in good health. I’ve come to the realization that everything this year will be seen later through the lens of this crisis, including the need for a proactive planning playbook in many areas of our lives and businesses.
Proactive Planning and a Finance Playbook Is More Important than Ever in a Time of COVID-19
Before the pandemic, we hosted a webinar series geared toward founders of early stage companies, particularly in the SaaS and subscription industries. We called the series “Extend Your Runway,” and used it to introduce the concept of a Finance and Accounting Playbook and why it is so important to the long-term success of any organization.
COVID-19 has only reinforced the importance of having a playbook as well as the importance of other topics we covered during those webinars, including the concept of Proactive Planning. That means preparing a beginning-of-year budget and measuring actual performance of the business against that budget on an ongoing basis. But proactive planning also means re-forecasting the expected business results (usually on a quarterly basis at minimum) as business conditions change.
Finally, proactive planning includes the ability to look at different, future scenarios to determine what your response will be. For example, what is the best-case scenario? What is the worst-case? What is the most likely outcome you should be planning for?
While I had initially intended to share these thoughts as a brief blog post, I quickly realized I needed to share this with other business and finance leaders in my shoes. In order to share it more broadly, we enlisted the help of our friends at Accounting Today and shared my post as part of their Voices series.
If you're also wondering how to ensure your business and accounting teams emerge more resilient, not only by re-examining our business continuity plans, but also by completely re-imagining our business models and instituting proactive planning, click here to read my article titled, “The Post-COVID-19 Business Model Requires Proactive Planning.” You'll find the five steps to take now toward proactive planning to ensure your business' continued resiliency in our new normal.
And please, if you're feeling like you need expert guidance to understand your options, feel free to call on our experts. We're standing by to be of service in any way we can to help you keep moving forward.