Undoubtedly the economies of almost every nation have been badly hit by the pandemic of COVID-19. All the businesses operating in the global market have been adversely affected by this significant problem, and signs of healing are not even near. Stats show that this adverse impact on businesses worldwide will continue to the following year. Many companies might also face permanent closure amid this pandemic. Larger corporations like the famous MNCs might be able to cope with this loss, but the real trouble is for all the small businesses in the global industry. Things are uncertain for small businesses, and they do not seem to get better any time soon. Small businesses live on the earnings of a few prior months, and they cannot last long without profits. In such situations, the entrepreneurs of small businesses might panic and close their ventures in fear of a significant loss. So, surviving during these challenging times will be exceedingly difficult, especially for these small ventures, and the answer to their problems is also not that straightforward.
However, there are always some pointers, which these merchants must practice to control the possible damage.
Stay composed
Not losing your composure is the first and foremost thing to do when going through tough times. Business owners must not panic, and they should stay calm. They should also take care of themselves and their businesses and do not even think of closure unless things become extremely tough for survival. Doing this can be incredibly challenging, especially when you are gradually running low on cash. Also, you have the fear that you will run out of money very soon. When the panic begins, remember, you need to maintain your calm and composure. Take good care of yourself in any possible way you deem fit. For example, do your daily exercise, try to get enough sleep, eat well, etc.
Lookout for aids
In such situations of uncertainty, there is always an aid program announced by the state. Look out for it and grab as many resources through it as you are allowed to. In this way, you might get enough help as needed and assigned to you in your quota. It might be just sufficient for you. These aid programs from governments worldwide are especially for middle and lower-class people. These programs are for those too who are running small businesses. Since they know that owners of large corporations will be easily able to cope with the pandemic, and they would deal with no critical damage since they have enough resources, large corporations can survive on their revenues for years.
The pandemic is temporary, and people have already come up with solutions since we do not know how long it will last. The good news is that the pandemic taught everyone alternate ways to work on a business and to think outside the box, which is a crucial entrepreneur skill that every business person must have. Look out for alternatives and how you can benefit your business during the hard times.
Look for opportunities
Find ways to continue your business; for example, if you can shift your business online, why not? You need to work on a few tweaks and start an online business. So, let us say you run an institution, take classes online. And if your business is product-based, you can still thrive online. If you have a brand, shift your business to social media. Before the pandemic, most people already loved shopping online since they had no time or energy to go out and shop, which means you already have half of the social media population on your side. And now, because of the pandemic, people have moved to online shopping since they do not have another choice. Either way, it is a win for you.
Once the pandemic is over, regular business competitions will probably be more competitive than ever. So as a heads-up, you must be prepared and work hard on your strategies. These hard days shall soon pass; look at everything as an opportunity.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The first thing to note is that your budget should focus on the costs of the goods or services that your business provides and the proposal in general. That is, clearly account for all your client’s needs. The following are a few steps to improve your budget.
Technical details are incredibly relevant, such as what you are going to deliver, functions that your work will cover, the elements that your service will consist of, etc.
The form of delivery is another essential aspect, as it is necessary to specify how the service will be delivered to the client. This ensures that they know what they will receive and how much they can demand.
You must clearly explain what you will receive before starting your work since compensation is relevant to the type of service you provide.
It is imperative that you outline the duration of the service provided and, if possible, create a schedule specifying specific deadlines.
The price of each stage of the service must be clearly stated so that the client knows what you charge for each service individually, as well as for overall management.
Do not forget to put an effective date on the budget.
It is essential that the budget be clear and detailed and that you address the client as a professional.
It is advisable to read it aloud and even have a trusted friend or colleague look it over and give their opinion.
A budget must be clear, concise, and detailed. There are several techniques available to create the perfect resume; however, whichever option you choose, it is most advisable to state all charges that constitute your service clearly. This way, your client knows exactly what they are paying for.
The following are a series of the essential elements that every budget should include:
Data of the company/ service provider:
In this section, you should state the relevant details of the company or professional providing the service, such as the name or business name, the NIF or CIF, the tax address, and other contact information.
Client data:
The budget should reflect the name of the client (either private or company), as well as your CIF or ID and address.
Concept:
The concept expands on the elements that make up the products and or services listed in the budget.
It should include the different offerings, working hours, materials used, and other associated costs. These ancillary costs may include contracting other third-party services, licenses, and supplies.
In this section, you must also include the number of units of each element that makes up the concept, along with their costs and the total cost of each group of units of the same nature.
Amount:
The amount must be broken down, indicating the tax base or the sum of the concepts without VAT, the percentage of VAT that is applied, and the total amount of the budget. This total amount results from the sum of the tax base plus VAT.
Payment method:
It is vital to consider the payment method of each budget. Typically, advances are not usually established when the total cost of services is low or does not require the prior acquisition of material. But in the case of more expensive services or ones that involve a significant acquisition of materials or contracting services from third parties, it is advisable to agree on advancement in the form of a percentage of the total amount.
In this section, you can also specify the means of payment, either by bank transfer or deposit or in cash.
Other elements of the budget:
In addition to the mandatory elements described above, several techniques can help make your budget more comprehensive and ensure greater confidence from your clients.
Delivery term:
Including the deadline for delivering a finished project, or the intermediate periods of the different stages, is an essential resource to add value to your service. Keep in mind, when a budget becomes legally valid, it is important to comply with these deadlines and plan for them in advance.
Guarantees and technical support:
There are certain services or projects that may need to be endowed with certain guarantees (especially when it comes to long-term services) or technical support, which does not have to be included in the amount of the service itself and must be budgeted appropriately.
A good technique to make your budget more attractive is offering this technical support free of charge for a specific time.
Legal conditions:
Include the legal conditions you deem necessary to avoid misunderstandings or abuses by any of the parties. In this way, you can prevent any misinterpretations of what is stipulated in the document, saving time and money.
Format:
Sometimes it will be necessary to present the budget in a different format, such as a preform invoice or a proposal for a commercial contract. This last modality is usually relevant for commercial agents, trainers, or programmers who develop their work continuously over time.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Bookkeeping is a time-consuming task which means that a bookkeeper needs to be highly focused on their work. Generally, a bookkeeper must make plans, follow a budget, collect receipts, and maintain financial records. These duties can be performed by maintaining payroll methods, compiling tax payments and financial services, receiving and applying payments as needed, keeping accurate accounts receivable and payable records, and resolving financial conflicts that can include tax withholding issues.
Below are four benefits from hiring a bookkeeper for your business:
They manage financial dealings
A bookkeeper’s job is often a full-time job. It is nearly impossible for a person to run a business and not hire a bookkeeper to manage the financial responsibilities. Hiring a bookkeeper is a good business decision because you will not have to worry about the daily financial services or financial transactions you may have with a client or company. As an owner, you, and your financial advisor or business manager, will only have to set a budget and then allow the bookkeeper to handle all other financial tasks for you. From paying taxes and salaries on time to resolving financial conflicts, a bookkeeper takes on the responsibility of managing a business’s finances, so you don’t have to. Free yourself from the stress of managing this facet of your business and hire a bookkeeper. After all, a bookkeeper very well knows the financial stability of a company, so they will be able to deal with everything accordingly.
They save you time and energy
Hiring a bookkeeper can help ease your mind because they can get a lot of financial tasks done efficiently. A bookkeeper frees up valuable time in your day by taking on responsibilities that would otherwise fall to you. This allows you to have time to consider your business and reevaluate any plans you might have. You will have time for yourself as well as your family and friends. If you are a busy person, there is no excuse for not hiring a bookkeeper. Be realistic and know that your specialty might not be handling all financial services your business requires. Hire a bookkeeper, and you will be at peace at the end of the day, the end of the month, and the end of the year.
They allow you to keep your focus
The best reason to hire a bookkeeper is that you can focus more on your business and strategies for growth and success. With maintained focus, you can implement new ideas in your growing business, make more robust business plans, or even think of starting another business. You can also focus and manage other business duties, including meetings, marketing, interviews, etc., without focusing on financial responsibilities. If you don’t hire a bookkeeper, it could be challenging for you to stay focused and motivated at the same time. Loss of focus and motivation could result in costly mistakes, so why not make a good decision today and hire a bookkeeper?
They can help your business grow
A bookkeeper surely needs education and experience to be effective for your business. A bookkeeper’s job requires a lot of effort, organization, and attention to detail. A professional bookkeeper can help your business grow because they have their financial finger on the pulse of the business, knowing when and how fast the company is growing. As a result of managing the finances, a bookkeeper keeps track of all the growth and can be a good advisor. Their advice is generally valid and reasonable, based on facts and numbers. Hiring a bookkeeper is a good decision, so you have additional help to track and manage the growth of your business.
In short, hiring a bookkeeper will release you from the sole responsibility of managing finances, including paying income taxes, sales tax, payroll taxes, etc. Also, you will not have to worry about making reports yourself and maintaining the budget, saving you time and energy.
A bookkeeper will take on financial duties, which allows you to focus on your business and can be an asset as you watch your business grow. In every way, hiring a bookkeeper is a favorable business decision, so consider employing one and become a little more stress-free.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Global expansion is often the vision of every company or startup, and 2021 brings numerous ways to expand a business internationally. International business expansion is possible through efficient research, critical thinking, and choosing an effective systematic strategy accordingly. However, ignoring these aspects can put your investment at risk. Therefore, it is essential to ask: Have you already set a new target for your company? Have you decided to become an internationally renowned brand from a domestic startup? If so, below are some essential factors that require your focus to expand globally:
Executing proper market research and setting an effective strategy accordingly
Generating and managing local workforce
Understanding and following international laws, rules, and regulations
Understanding culture and setting marketing strategy accordingly
Determining how to handle multiple languages and localization
Market Research
Once you have decided and set an efficient strategy to launch your business globally, it is vital to analyze your product’s target audience’s requirements, taste, and willingness. Ask yourself:
Is your product serving a necessity of the target audience?
Is the target audience attracted? Understand what exactly consumers want.
Does your product require any adjustment to become acceptable locally? Understand the details of the new market.
Does the new marketplace have the necessary setup and supply system that supports your product?
Are there any competitors? If yes, analyze them properly.
Are your competitors stable? Find the possible gaps that your competitors are not fulfilling and use your product to fill them wisely.
Decide Your Scale of Entry
As mentioned above, you will need critical thinking and research at every step. Is investing in this marketplace too risky? According to the research you have completed for this specific market, look for possibilities and risk factors and set an appropriate investing strategy. There are two investing strategies that you can follow:
Invest a large sum of capital when entering new markets
Invest less and enter steadily
Suitable Scale of Entry
Invest significant capital:
Choosing this investment option in a new market is effective but can also be risky. If you can afford this kind of risk and decide to pursue it, you will be considered a committed and trustworthy company for both the market and consumers. Most importantly, it will set your dominance in the market above all other competitors.
Invest less and enter steadily:
If you are unwilling to take a considerable financial risk at once, follow the gradual entry format. This option will allow you to understand market parameters, profit and loss factors, possibilities and impossibilities, etc. It will also help you invest wisely, but it can reflect a negative image of the market, leaving your commitment and trustworthiness at stake. It is better to maintain stability between risks and benefits.
Understand Local Laws and Regulations
A single law can affect a business strategy against your business procedures. The profit margins, ease of doing business, supply chain, manufacturing, distribution, and retailing can be at stake and cause damage to your business structure. Therefore, it is better to understand the new market’s laws and regulations and make decisions accordingly. This assessment of risk aspects includes customs laws, tax laws, liability laws, commercial laws, limitations on imports and exports, etc.
Local Workforce
Legalities in daily operations can become complicated when translated, but local experts can be beneficial in such situations. They understand the law and in relation to day-to-day operations and handle situations accordingly.
There are responsibilities attached to benefits, and it is better to properly analyze the local labor laws and regulations before you proceed with hiring a local workforce. Once you employ the local workforce, a sense of place and ownership starts to develop within the market. The local people often connect with you and become loyal to the organization, positively impacting your overall presence.
Conclusion
Internationally expanding a business has become easier than ever before with the help of technology. Similarly, numerous national governments amend their policies to make business easy as foreign investors tend to boost their country’s economies. Many factors of international expansion continue to complicate the process, so a proper analysis must be completed before making any decision. The factors mentioned above significantly impact a global investment and help you prepare for a strategic expansion.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The drawn-out skyline, the profound downturns activated by the pandemic, relies on enduring scars through lower speculation, a disintegration of human capital through lost work, and interruption of worldwide exchange and flexible linkages. As for developing the business sector and creating nations, many face overwhelming vulnerabilities. It is essential to fortify general wellbeing frameworks, address the difficulties presented by familiarity, and actualize changes to bolster solid and manageable development once the wellbeing emergency lessens.
Developing the business sector and creating economies will be slammed by monetary headwinds from different quarters: pressure on feeble medicinal services frameworks, loss of exchange and the travel industry, diminishing settlements, quelled capital streams, and tight budgetary conditions amid mounting obligation. Exporters of vitality or modern products will hit hard.
If we look at it objectively, the economic damage cost by COVID-19 is still unknown. However, the impact is unarguably disastrous, with the businesses shutting down and the productions reduced to more than half of the usual.
Indeed, this disheartening viewpoint depends on extraordinary vulnerability and huge drawbacks. The estimate accepts that the pandemic subsides so that household relief measures can lift by mid-year in advanced economies and later create nations that unfriendly worldwide overflows ease during the second 50% of 2020—keeping the far-reaching budgetary emergency away.
According to economists, total GDP growth for 2020 will decrease from 3.0 percent to 2.4 percent. However, with the virus spreading faster than a wildfire, its percentage could well and truly be much less. In other words, many small to medium-sized businesses are in stagnant water to survive this epidemic.
Termination of Employment
As businesses suffer heavy dents on their production operations, they face a hard time paying their employees. Due to this, there are possibly millions of people no longer working worldwide. If not termination then, they face a significant decrease in their salary package. On the other hand, employees with reduced pay have no other job opportunities to grab since not even large-scale organizations need new workers.
Tourism at a Halt
One of the major industries which provide ROI for countries is the tourism and travel agency. COVID-19 has potentially destroyed the tourism industry, which usually generated billions of dollars for economic development. The worst part is that we don’t know when tourism will reopen, which also creates problems for the government to control their financial downfall.
Drop-in Business Confidence
Most businesses were already falling behind due to the financial crisis. However, with the production operations reduced substantially, the Business confidence level has also decreased significantly. Most organizations are just hoping against hope that their firm’s fortune will improve in the coming six months. Not to mention that the investors are afraid to invest significantly in businesses due to the pandemic spread; hence, adding another hit on the economic condition of the global economy.
Increased Demands, Decreased Supplies
We know that there has been a high need for essential items among consumers ever since the outbreak. Since people created havoc and started to store items in bulk, the result of it was that there was an insane shortage of commodities. Who is to say that something like this wouldn’t happen again? Thus, fulfilling the demands of consumers by acquiring the correct number of supplies.
In retrospect, the increased demands of these essential supplies make it good news for the global economic stature. Thus, the business owners in retail and logistics could improve the overall global GDP.
All in all, COVID-19 has drastically damaged the financially hit global economy two decades back. It will take time and effort to get back on our feet efficiently. However, let’s hope for the best!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Young entrepreneurs experience many high points and low points when they start their venture. As a young entrepreneur, you may face numerous choices like leaving an organization with a consistent paycheck to begin an adventure with no soundness and assurance. However, the adrenaline surge to make something new motivates an entrepreneur, not sureness. Facing challenges, committing errors, and taking care of business shapes the young entrepreneur’s life.
Do:
Develop Your Business:
If you have decided to start your business, do everything you can fully develop your idea. While business development does not exclusively depend on the businessperson because of external factors, entrepreneurial drive and motivation are significant aspects of success.
If you do not have an online presence, this is the ideal opportunity to begin and perfect it. Make a well-planned strategy that permits you to situate yourself and your organization in the market. This incorporates making a website, web-based social media, Search Engine Optimization (SEO), and web-based business.
Collaborate:
An influential businessperson realizes that the way to success lies in leveraging human resources. He should surround himself with capable individuals who can contribute something other than what is expected and incentive to his organization. If you do not plan to hire any partner or employee in 2021, you should reconsider your organization’s status and this possibility. Ensure you locate competent individuals whose thinking aligns with the objectives of your organization.
The primary individuals in an organization should embody and characterize its mission, and they will set it on its course.
Revolutionize Business Areas:
Advancement is fundamental for any association. Survey your processes, products, or market advantages and distinguish the principal zones for improvement and make it your objective to discover an imaginative solution for them.
Try not to be reluctant to face challenges and do new things. Minor changes to your advertising, HR and advancement methodology can improve your business’s course and give it the lift it needs.
Have Standards:
It is unimaginable for individual enterprises not to follow the standards when an absence of norms can prompt desperate outcomes. Ensure that you work with exclusive requirements. This suggests doing the best, anticipating the best, and building a mentality of value and a base degree of worthy guidelines inside your organization, in all cases.
Do Not:
Neglect Loved Ones:
When you are an entrepreneur, you possess next to no energy for your friends and family. However, these individuals can be your most outstanding inspiration and support. Regardless of whether you have a busy schedule, attempt to commit days or hours only for them. When you have coffee with a friend, dinner with family, or play with your kids, disengage from work to give them quality time.
Lose Attention:
When you fail to remember why you started your business, you will inevitably become dissatisfied with your venture. For example, not thinking about your clients and not choosing to address their needs can cause you to lose perspective. Always keep your client’s needs at the focal point of business operations. Consistently ensure that you connect with your customers and continually assess your focused attention.
Lack Leadership:
Organizational Leadership encompasses numerous ideas and goals that directly impact deals, promotions, and business operations. When entrepreneurs relinquish leadership decision-making to others, it is commonly the beginning of a terrible situation. In 2021, focus on maintaining leadership status and improving leadership skills. Consider advice and counsel but be bold in decisions that will impact your business.
Let People Get Their Way:
Organizational bullies are individuals who have their own agenda, often contrary to business objectives, an organization that has created a habit of sabotaging organizational goals. Keeping your organization free from organizational bullies is of the utmost importance for leaders. One way to develop cohesion is to ensure every individual who is essential to the organization knows its values and mission and adheres to the standards you have set.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
According to recent research, people should avoid only investing in stocks anymore. Some experts even stated that it is better to flush money down the toilet or throw a big party rather than investing in a stock. For a fresh investor, investing in the stock market typically results in a loss. Most people often think of the stock market as their one-way ticket towards wealth. However, the reality of the outcome is more disappointing and overwhelming. Below are a few legitimate reasons why investing in stocks no longer makes much financial sense.
You don’t know much about stocks
Buying stocks and watching them go down 70% before they end up going up a mere 30% from their starting price can be extremely disheartening. The stock market can become a frustrating waiting game. However, being patient for so long and not getting the desired results can be very disappointing. Many people invest in stocks while having very little knowledge of what exactly they are putting their money into. Over the past seventy years, the average return of the stock market is 10.7%, with investor return being at 1.8%, generously.
Way too risky
If you follow the daily news, you probably know how fast the stock switches from good to bad and from bad to worse. With this much up and down movement, a person can quickly lose a good deal of money in a short amount of time. Judging by recent figures, investing in stocks is far too risky.
Dealing with brokers
Dealing with brokers can be the worst part of investing in stocks. Some brokers are costly to hire but will offer much more perspective, whereas others are cheap but not very experienced. Finding a reliable broker can be challenging, especially for a new investor.
Even the best investors in the world make, on average, between 10 and 15%
From a realistic perspective, a typical stock market investor will never make the large sums of money they hope for. Typically, if you decide to pick some stocks and hold them for a long time, you will gross a return of 7%. Is that enough? In short, some people are better at playing the market, and they learn faster. These people may profit more than the average investor, but most do not.
Stocks can be boring
Suppose you own a stock right now related to a drug company that creates a product for treating irritable bowel syndrome. First, you must research the drug and the market extensively. You may even want to reach out to the company to gather more relevant information. The whole research process is extremely tedious and complex, and even after days of research, there are no guarantees.
Taxes
Let us assume a person buys and sells the same stock in the same year and somehow ends up tripling their money. Sadly, now there are taxes to pay on their gains. Paying taxes is something that everyone has to do. However, the tax liability can become immense when it comes to the stock market, especially for new investors.
Not good at technical analysis? Do not invest in stocks
In stocks, it is almost impossible for someone to predict how the market will move. This means that the markets may be tending towards the north when you invest. However, it can change direction dramatically, and only an experienced forecaster can identify these changes over time.
Require a lot of time
Unlike other long-term investments that you can make almost in autopilot mode when investing in stocks, youwill need to continuously research the companies to determine whether they are still earning their target returns. If you are usually busy or do not have the time to do this research, investing in the stock market is a bad idea.
Moreover, you do not want to invest in a high failure rate market. It’s best if you invest in a market that has a high success rate and a tremendous return on investment. So, if you’re thinking about spending money on stocks, think again! Consider these hurdles before spending your hard-earned money on stocks.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The Impact of COVID-19 on Agriculture: Insights and Analysis
COVID-19 agriculture impact created unprecedented disruptions across global food systems, transforming supply chains, labor markets, and production methods while exposing critical vulnerabilities in modern farming operations. The pandemic fundamentally altered how food moves from farms to consumers, with effects ranging from massive crop losses due to labor shortages to revolutionary shifts toward digital agriculture technologies that continue reshaping the industry today.
As CEO of Complete Controller for over two decades, I’ve witnessed countless business disruptions, but nothing compared to watching agricultural clients navigate the pandemic’s cascade of challenges. From small family farms suddenly unable to access seasonal workers to large-scale operations pivoting overnight to direct-to-consumer sales, the crisis revealed both the fragility and remarkable adaptability of our food systems. This analysis draws from real experiences of agricultural businesses that survived—and sometimes thrived—during one of history’s most disruptive periods, offering practical insights for building resilient operations that can weather future storms.
What is the impact of COVID-19 on agriculture?
COVID-19 disrupted supply chains, caused labor shortages, triggered food price inflation, and accelerated digital transformation across global agricultural systems
Supply chain disruptions prevented movement of crops, inputs, and equipment between farms, processors, and markets
Labor shortages from travel restrictions and illness reduced harvesting capacity and processing operations
Food prices increased 23.6% from 2020-2024 while vulnerable populations faced doubled rates of food insecurity
Digital agriculture adoption accelerated as farmers embraced precision technology, e-commerce platforms, and remote monitoring systems
The agriculture sector experienced severe disturbances as COVID-19 hindered supply chains from farmers to retailers, resulting in worldwide food insecurity and exposing the interconnected nature of modern agricultural distribution networks. Transportation restrictions reduced the supply of farming inputs and decreased crop production, creating ripple effects that extended far beyond individual farms.
Large market participants accelerated and distorted the negative effects of supply chain disruptions, with the Federal Trade Commission finding that smaller grocery retailers disproportionately faced difficulties obtaining products compared to larger firms. This disparity highlighted how crisis conditions amplified competitive disadvantages for smaller operations throughout the agricultural value chain.
Processing facilities became critical chokepoints, particularly in the meat industry. Daily capacity at U.S. cattle and hog facilities declined as much as 45%, with meat production falling 40% below 2019 levels by mid-May 2020. These bottlenecks created situations where livestock producers faced oversupply and low prices while consumers experienced shortages and price increases.
The sudden shift from food service to home consumption caught supply chains unprepared. Restaurants, schools, and institutional buyers represented massive market segments that vanished overnight, leaving producers with specialized products but no alternative distribution channels. Consumer panic buying created additional volatility, making agricultural planning nearly impossible as demand patterns became unpredictable.
Labor Shortages Cripple Production Capacity
Agricultural labor markets faced severe disruptions as workforce shortages emerged as one of the most critical pandemic challenges. Labor shortages due to sickness and immobility of expatriate workers reduced food processing capacity, creating bottlenecks throughout agricultural supply chains.
Movement restrictions prevented farmers from accessing fields except for essential activities, resulting in manpower shortages and reduced production efficiency. Grain producers in China couldn’t sow crops on schedule, while wheat and pulse harvesting in northwest India suffered from absent migrant workers.
Key labor market impacts
Border closures blocked 11% of crop workers who were international shuttle migrants
Processing plants became outbreak hotspots due to close working conditions
Rural employment recovered by July 2020 but resurged job losses followed infection spikes
The H-2A guest worker program, which supplied 10% of crop workers in 2019, faced unprecedented strain. Demand for these workers had already tripled from 2011-2019, and pandemic restrictions intensified existing shortages. Processing facilities proved especially vulnerable—over 80 beef and pork plants reported COVID-19 cases from April to June 2020, with some experiencing 30-70% workforce infection rates.
Food Security Crisis and Persistent Price Inflation
Food security deteriorated dramatically as supply and demand disruptions created both physical and economic barriers to food access. The economic chaos threatened availability and affordability, with distribution systems failing to deliver food where needed most.
Global food price inflation significantly outpaced headline inflation, peaking at 13.6% in January 2023 compared to 8.5% overall inflation. This 5.1 percentage point gap demonstrated how agricultural disruptions created lasting economic consequences extending beyond the immediate crisis.
Low-income countries suffered disproportionately severe impacts. While global food inflation peaked at 13.6%, low-income nations experienced 30% food price inflation by May 2023. Research showed that each 10% food price increase drove 3.5% more people into moderate food insecurity and 1.8% into severe food insecurity.
Escalating food insecurity statistics
Severely food-insecure populations doubled from pre-pandemic levels to 276 million
Vermont documented 33% increase in household food insecurity
35.5% of food-insecure households were newly experiencing hunger
Two-thirds of food-insecure households reported eating less since COVID-19 began
The persistence of high food prices became a major barrier to recovery. Multiple factors sustained inflation, including pandemic fiscal policies, supply chain disruptions, the Ukraine conflict, and extreme weather events. These compounding pressures maintained food affordability challenges long after other economic indicators stabilized.
Digital Transformation Revolutionizes Agricultural Operations
Digital technologies became essential survival tools as social distancing made traditional farming methods impossible. The crisis accelerated the adoption of precision agriculture, artificial intelligence, and e-commerce platforms that had been gradually developing for years.
Farmers rapidly embraced GPS-guided machinery, automated irrigation, and drone monitoring to maintain production with reduced workers. Mobile platforms connected producers directly with consumers as traditional markets collapsed, forcing agricultural businesses to develop digital commerce capabilities overnight.
India’s digital agriculture transformation exemplified this revolution. The eKutir platform enabled smallholder farmers to access markets, financing, and equipment sharing when physical systems failed. Farmers connected with suppliers, arranged transactions, and maintained income despite lockdowns—proving technology could sustain local food systems during severe disruptions.
Digital agriculture benefits
Remote crop monitoring reduced need for field visits
Precision technology optimized resource use with fewer workers
The pandemic demonstrated that crisis periods could catalyze technological transformation, though sustained progress requires ongoing infrastructure investment and farmer education. Digital solutions tailored to smallholder needs substantially improved resilience against contemporary challenges.
Government Response Programs Provide Critical Support
The Coronavirus Food Assistance Program (CFAP) delivered $23.5 billion to U.S. farmers and ranchers facing sales losses and increased costs, representing over half of 2020’s direct agricultural payments. This unprecedented intervention highlighted pandemic severity while establishing new crisis response expectations.
Payment distribution revealed geographic production concentration and varying regional impacts. Iowa received $2.1 billion, California $1.8 billion, and Nebraska $1.6 billion—reflecting both agricultural scale and market disruption severity in these states.
Trade support programs helped agricultural exports achieve remarkable recovery despite disruptions. U.S. agricultural exports rose 6.1% in 2020 to $149.7 billion, then surged 18.9% in 2021 to $177.0 billion. This performance demonstrated agriculture’s fundamental competitiveness when supported by effective trade facilitation.
Small and medium producers faced disadvantages accessing federal aid compared to larger operations. Studies found smaller, diversified farms were less likely to qualify for pandemic relief, while large-scale operations received disproportionate assistance. This disparity potentially accelerated consolidation trends as better-capitalized farms expanded while struggling operations faced exit pressure.
Final Thoughts
The COVID-19 pandemic exposed critical vulnerabilities while catalyzing innovations that permanently transformed agriculture. Supply chain disruptions, labor shortages, and processing bottlenecks created immediate crises, but the sector’s response demonstrated remarkable adaptability. Digital transformation accelerated by years within months, government programs provided essential support, and new distribution models emerged from necessity.
Moving forward, agricultural resilience requires balancing efficiency with flexibility, investing in technology while supporting workers, and maintaining both global integration and local capacity. The pandemic proved that agricultural systems can adapt rapidly when necessary, but sustaining improvements demands ongoing commitment to building more robust food systems. For expert guidance on navigating agricultural business challenges and implementing resilient financial strategies, contact the team at Complete Controller—we’ve helped businesses across all sectors build sustainable operations that thrive through disruption.
Frequently Asked Questions About COVID-19 Agriculture Impact
How did COVID-19 affect food prices globally?
COVID-19 triggered significant food price inflation that peaked at 13.6% globally in January 2023, with low-income countries experiencing even higher rates up to 30%. The pandemic disrupted supply chains, reduced processing capacity, and created lasting economic effects that kept food prices elevated for years after initial lockdowns.
What were the main labor challenges in agriculture during COVID-19?
Agriculture faced severe labor shortages due to travel restrictions blocking migrant workers, illness reducing workforce availability, and processing plant outbreaks. Border closures prevented 11% of international shuttle migrants from reaching farms, while some meat processing facilities experienced 30-70% worker infection rates, creating critical production bottlenecks.
How did digital technology help farmers during the pandemic?
Digital technologies enabled remote crop monitoring, automated operations, and direct consumer connections when traditional methods became impossible. Farmers adopted GPS-guided machinery, drone surveillance, mobile market platforms, and AI-powered disease prediction systems that maintained production while reducing physical contact requirements.
Which agricultural sectors recovered fastest from COVID-19 impacts?
Agricultural exports showed remarkable resilience, growing 6.1% in 2020 and 18.9% in 2021 despite disruptions. Mechanized crop production recovered faster than labor-intensive specialty crops, while farms using primarily family labor proved more resilient than those dependent on hired workers.
What long-term changes did COVID-19 create in agriculture?
The pandemic accelerated digital transformation, increased focus on supply chain resilience over pure efficiency, enhanced workplace safety standards, and expanded direct-to-consumer marketing. These structural changes created lasting modifications in production methods, distribution systems, and labor practices that continue shaping modern agriculture.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
As an entrepreneur, it’s easy to become obsessed with productivity and running from every pillar to post to grow your business. Unfortunately, such behavior is neither healthy nor sustainable. Entrepreneurship isn’t a three-minute sprint; instead, it’s a marathon. You need to ensure that you’re not sacrificing your physical and mental health while working hard for your startup. This piece discusses some essential tips to avoid overworking yourself as an entrepreneur.
Take Proper Test
Sleep plays an instrumental role in your well-being. If you’re sacrificing your sleep to work for long durations, gradually, it can take a toll on your health and business. Hence, you should always ensure that you’re well-rested. To help you get more sleep, you should track your sleeping habits as aggressively as you do your retail returns. Every person needs a different amount of sleep. So, find one that works for you and stick to it. Second, curate the ideal environment for rest. Removing screens from the bedroom, using blackout shades and good sheets can help.
Find Time for Exercise
As an entrepreneur, you must face various challenges every day. It’s best to find a release for the pent-up frustration. To counter negative feelings from weighing you down, find a time to exercise. A regular workout routine can do more than burn calories; it can also be a great way to release stress. You can opt for any activity that you enjoy and can perform regularly. Whether going on a walk or attending a boxing class, find something to help your body move and clear your mind of troubling thoughts.
Spend Time with Your Loved Ones
Human beings are social animals. We are programmed to connect with other people, despite being shy or introverted. Take some time out of your tight schedule and connect with a close friend or family member. It doesn’t necessarily have to be a visit to their house. A simple phone call or video chat could also work. Ensure that you don’t talk about work and share personal stories to keep the conversation lighter and more meaningful.
Take Frequent Breaks during the Day
This tip seems simple but can be tricky to follow. When you’re constantly busy at work, it can be challenging to extract yourself from that environment. Even taking a lunch break could feel like a waste of time. However, this is not healthy. If you want to increase your productivity at work and keep your health intact, you must take regular breaks from work. Step away from your computer now and then and relax. You can also go out for lunch once a week to get a change of scenery.
Keep Personal and Professional Life Separate
Don’t make a habit of bringing work home every night. When you’re at home, try to forget about work for a while. If you live alone, indulge in your favorite activities. In contrast, if you have family, spend quality time with them and ask about their day. Similarly, make sure that you’re not bringing any house troubles to work. If you’ve fought with your spouse early in the morning, don’t let it spill into your office life.
Divide Up Responsibilities at Work
When you start a new business, you’ll find it tempting to get involved in every aspect of your work. However, this can harm your business. Learn to delegate responsibilities. For instance, if you use various digital marketing tools to promote your startup online, hirea team of professionals to look after each channel. Furthermore, don’t try to micromanage your employees. Job satisfaction arises when employees gain decision-making power in their positions.
Create Opportunities for Work
A great way to break the monotony of your workdays is to create avenues for growth. Closely monitor your employee’s performance and offer them incentives to perform better. Show them that if they work hard, they’ll also benefit from the company’s growth. After all, no one wants to feel like they’re working a dead-end job with no future. Give your workers a roadmap to success and witness your worries evaporate.
The Bottom Line
In a nutshell, working as an entrepreneur can be extremely challenging and can make you neglect your health. Ensure that you recognize this problem and take adequate steps to resolve it. Some of the things you can do to maintain your energy levels are taking breaks from work, practicing good sleep, connecting with loved ones, delegating responsibilities, and helping your employees grow.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
For growing your business, it is essential to establish solid foundations of internal controls such as auditing, accounting, purchasing, and damage control planning. Every small business needs these internal controls to manage the money correctly. Without this, you are leaving a lot of money on the table for fraud. Employee theft is a big problem for a small business that cannot recover from the loss. According to U.S Commerce Department reports, 30% of business fails because of employee theft, and many of them are the smaller firms that cannot afford to recover from the loss.
Here are the tips that can help in ensuring financial control:
Keep the duties separate. Never assign related obligations to one employee. For example, the person who writes the checks should never be the one who signs them. Or the person who checks the mail should never record the receivable or reconcile the accounts. When you divide the responsibilities, it becomes difficult for the employees to steal from the company and manipulate the records.
Reconcile your bank statement
Receive your bank statement personally and match it with your business account. Carefully review every transaction, check, and receiver. Examine the payees and signs on each check and monitor any fraud activity.
Sign all the checks yourself
No matter what, always sign every check yourself. Doing so will help prevent employee theft.
Review Payroll
Before sending, review the payroll and check for any variations in the amount. For reducing the risk of payroll fraud, use direct deposit. Direct deposit may be a time-consuming task, but it is worth it in the end. Review every check and make sure they are for your employees only. If you find any unknown name, go, and find that person. Keep a weekly or monthly count of the number of people on your payroll, and then verify that number against the number of checks you have. Ensure that no one can make any changes to your company’s master payroll file without your permission.
Keep personal and business finances separate
You may consider it easy to use your bank account for your business as well, but in the long run, both your personal and business finances will suffer. And this can be a tremendous headache for you in the future. For running your business smoothly, it is essential to open a business account and get a separate credit card to help your company build its credit rating.
If you need to use your business money for personal expenses, transfer that amount into your bank account and use it. If you need a loan for your business, document it properly with a promissory note specifying repayment terms.
Carefully monitor your company’s checks
Carefully monitor and check every single check. Keep your corporate statements in a locked drawer, and don’t give the key to anyone. Always use pre-numbered checks and search for missing check numbers from time to time. Never sign a blank check.
Closely guard your receivables
Hire more than one employee for counting and verifying incoming checks. Buy a “for deposit stamp only” and use it on all incoming checks. The stamp can prevent the company from employees theft. Investigate the customer’s complaints regarding payment issues. Get a back and front copy of the customer’s check and make sure it is deposited into your business account only.
Send your bookkeeper on vacation
Sometimes those employees who seem most loyal by not going on vacations are doing fraud with the company. For concealing their theft, they never take a leave. To stop this from happening, make sure that the person handling the responsibility of bookkeeping or accounting goes on a vacation every year, at least for two weeks at the end of the month. Use this time to review the documents and books and look for discrepancies.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
However, there are always some pointers, which these merchants must practice to control the possible damage.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
