Below is an interesting article from the states questioning what lenders and investors will do when they see the financial impact covid 19 has had on the small businesses that they are potentially going to lend to or invest in.
While in the UK we will draw our approach to the year end accounts from guidance issued to us from our governing bodies. Small business owners should be considering how they can track the impact of Covid 19 in their internal managment accounts, should they need to produce this information to support any loan applications or information to a potenital investor.
The drop in sales, the increase in costs from having to use different suppliers, and the money received in grant funding through the governments Covid 19 business support packages. All these are technically one-off issues that you might want to show as seperate to your 'normal' trading activity within your own internal reports.
Does your system have the capability to do this? Many systems, both cloud based (Xero Quickbooks and FreeAgent) and desktop (SAGE, etc) have the functionality available should you wish to use it. If you think you might need to do this in preparation for approaching a bank or investor for funding, then Ask your bookkeeper or accountant to look into this.
https://www.theguardian.com/business/2020/jun/18/coronavirus-small-business-financial-accounts
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