This popular blog post was first published early in the pandemic of 2020. We have made some updates and offer it again as conditions continue, worsen, and in some cases improve. Always changing. We expect that there will be more changes to come in the months ahead and we'll do our best to help you stay on top of things and navigate the solutions that are best for you.
What continues to be true is that when the COVID-19 threats have finally 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 talked with and listened 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, it 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 business models or missions. Thinking outside the box - and planning differently - are the keys.
A new commitment to cash flow planning and management is needed. Accountability, transparency, and business planning and personal financial activity will be critical to protecting your small business investments. Projecting reduced income results, 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.
While final legislation is still pending, all signs point to potential tax and economic benefits in the losses incurred. For example, new tax laws will likely enable current year losses to be carried back three years. If so, those taxes may 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 provided based on the amount of loss incurred. We are here to help with all of it.
Watch our blogs for specific topics that can help your business navigate the changes necessary for coping now and into the post-pandemic business environment. Here are a few titles, in case you missed them:
- Rethinking Overhead in a New Virtual World
- Rewrite a Business Plan for a Fresh Start During Covid-19
- How to Predict a Cash Shortage
- Small Businesses Should Heed Warnings of a Cash Flow Crisis
- How to Measure the Impact of Revenue on Cash Flow
- How to Improve Your Cash Balance with Financial Forecasting
You don't need to go from "before" to "after" without a plan and a process for rebounding. Get in touch and we'll schedule a time 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