Source: EFAA
EFAA recognizes that while SMPs are heavily impacted by the coronavirus they are an invaluable source of guidance and expertise on financial management for SMEs. Many if not most SMEs are under enormous financial stress right now, and likely to be for some time, and so timely advice on financial management, in particular cash flow, is crucial. SMPs are responding, offering advice, sometimes free, to SMEs to help them survive this crisis. The advice includes general guidance on sound financial management (see below for some financial management tools) and specific advice on how to take advantage of EU and government initiatives. Set out below is a case study of a real life SMP in Spain describing how they are helping SME and self-employed clients.
Case Study: How a Spanish SMP is Helping SME and Self-Employed Clients
The practice is a boutique firm based in Spain with over 150 partners and staff offering accounting, audit, tax and advisory services. SMEs are the foundation of Spanish business and society, a source of employment, income, innovation and vital goods and services and so it’s vital they get support. The practice has established COVID-19 Client Support Strategic Team: Method-Action, communicated this to all clients and is maintaining continuous contact with all of them. The practice communicates regular updates on the most relevant developments for SMEs and the self-employed, such as new legislation and economic measures, from the EU, Spanish State Government, and Governments of the Spanish Autonomous Communities and Local Entities. The practice is working closely with its clients hearing and resolving their most immediate problems, mainly in the areas of human resources, tax, accounting, legal and financing. The practice offers a comprehensive client response and support team to help SMEs design and execute a plan of action for these areas. The practice works alongside their SME clients on the method and action as follows:
Clients are advised to make their own strategic plan to address the economic challenges presented by COVID-19 – this plan should handle various scenarios, set priorities and action to be followed to secure cash and financial flows, search for suitable financing, to renegotiate contracts, to prepare financial forecasts and projections. The practice uses a checklist for each area and a dedicated team resolves problems and issues with clients by tele-conference and digital tools.