The world is currently facing an unprecedented challenge with the COVID-19 pandemic. No one is being spared from the havoc it is bringing, including businesses in Nashville. As alarm over the virus spreads and people are choosing to stay indoors, many small and medium enterprises in the city are finding it hard to stay afloat.
If you’re a business owner in Nashville, don’t hesitate to call your CPA firm and get financial advice in this time of difficulty. Your CPA can provide the guidance you need in making decisions and taking the right steps to help tide you over during this situation.
Here’s a list of some of the things you might want to discuss with your CPA.
1. How will the crisis affect your finances and what can you do to mitigate potential losses?
Not all businesses are impacted the same way by the pandemic. Restaurants and bars are among those who will likely take a hit, but online services may be less affected. You’ll need to take a good look at how the current situation and future developments can impact your revenue, expenses, cash flow, and others. Discuss with your CPA what may be done to realign your expenses with your revenue projections.
2. How much cash should you have on hand?
Given the worsening economic crisis brought about by the pandemic, will it make sense to convert some of your assets to cash? If so, which of your assets are best converted, and how much cash should you aim to have?
3. What business continuity measures should you have in place?
In case the situation takes a turn for the worse or lockdowns are ordered, how can you keep the business going? What do you need to include in your plans, including the kind of resources you should have, and the actions you can take?
4. Do you have sufficient insurance coverage?
Ask your CPA about the kind of coverage you should have for your type of business. Some policies to consider are:
- Business interruption
- Supply chain interruption
- Employment liability
- Subcontractor default
- Medical coverage
- Catastrophe insurance
5. How can you establish remote working?
Is remote working a good option for your business? If so, what do you need to consider in planning and preparing for it? Should you provide your employees with the hardware and equipment needed, such as laptops or PCs? Should you subsidize their internet access? How can you track their work hours and output?
6. Where can you go for financial assistance?
Ask your CPA for help in finding the right option for financial assistance, whether it’s to pay your creditors despite decreasing profits, finance work from home expenses, or fuel your business’ recovery after the pandemic. Your options include:
- Small business administration loans
- Private loans from such entities as Facebook and Amazon
- Loans from banks who offer special terms for SMEs affected by the pandemic
COVID-19 has upended the lives of people around the world, and you can expect its effects to be widespread and long lasting. If you haven’t done so, make the preparations now to ensure the survival of your business while doing your share in promoting health and safety in the community. Your CPA is your partner through this difficult moment.
How to Protect Clients’ Financial During the Covid Pandemic, CPAPracticeAdvisor.com
CPAs Tell How to Stay on Sound Financial Footing During Crisis, BusinessJournalDaily.com