What seems true, now, is that when the COVID-19 threats have subsided, the ways of life we knew and counted on before the pandemic will not be returning to us in precisely the same ways. We are at the beginning of a new era, and it can still be hard to imagine. In short, this departure from old ways of doing things is not "temporary."
Here at Myrick CPA, we have been talking with and listening to small business owners and organizational leaders. Many are already hard at work imagining new ways to do business; new ways to lead and manage in a future that will rely more heavily on technology than ever before. These leaders - whether sole proprietors or corporate executives - show vision, imagination, and entrepreneurial spirit. They are already finding new ways to engage with customers and stakeholders with video chat platforms, even as physical workplaces remain closed. They are showing a way forward that can be replicated and applied by virtually anyone.
Now, more than ever is the time for all small business owners to engage in a new kind of planning; new ways of monitoring and projecting cashflow; even new models of business or mission. Thinking outside the box - and planning differently - are the keys.
A new commitment to cash flow planning and management is needed. Accountability, transparency, and planning of business and personal financial activity will be critical to protect your small business investments. Projecting the results of reduced income, even if temporary, will guide changes in spending priorities, billing, and business model. Up-to-date cash flow projections are necessary to quantify those changes.
There will be potential tax and economic benefits in the losses that are being incurred. For example, new tax laws are being introduced to enable current year losses to be carried back three years so that taxes can be refunded.
There will be other programs introduced to help small businesses based on need. Financial statements will be needed to support any type of relief that will be provided based on the amount of loss incurred. We are here to help with all of it.
You don't need to go from "before" to "after" without a plan and a process for rebounding. Let me know when you would like to talk. As planners, we are here to assist you in navigating simple solutions.
Stay safe, stay well, and stay tuned,
Charles and the Myrick CPA Team
Charles P Myrick CPA, Washington DC tax preparation firm, specializes in accounting and bookkeeping services for small business and entrepreneurs. We invite you to learn more about the small business accounting services that are available: (202) 789-8898.