It is unclear how long this outbreak could last and the severity of its effects. Some of our clients have already reported the negative impact of COVID-19. We would therefore like to take this opportunity to advise clients to take sensible precautions in preparing their business, if not already done so:-

• First and foremost, employers should ensure that they are taking any necessary steps to protect their employees. All employers have health and safety obligations to keep employees informed about health risks that may arise in carrying out their duties and to ensure that working practices do not create undue risks to employees. 
• If not already done so, bring your P&L and Balance Sheet up to date so you have the best idea of your financial position. Cloud accounting software such as Xero can help;
• Businesses should assess their working capital position and ensure enough funds are available to cover a drop in sales, and upcoming liabilities such as salaries and VAT. Now may also be a good time to negotiate temporary credit terms with suppliers and speak to landlords about reduced or deferred rent;
• Contact debtors and chase overdue invoices. Look at reducing credit days and credit limits.
• Look to accelerate R&D claims;
• Ascertain the nature of insurance policies that you have in place which could, in principle, cover business interruption, supply chain and other losses (including third party claims or losses incurred as a result of disrupted or cancelled business travel);
• High levels of awareness around COVID-19 and resultant public concern has seen an increase in criminals using public health themed phishing emails to deliver malware and steal sensitive information. Staff should be advised of this and reminded of relevant processes for handing suspicious emails.

As developments unfold, we will make further announcements on our website and social media.

For further information, please contact us, or write us to audit@alyaauditors.com.