How To Keep Your Business Finances Afloat In The Midst Of The Storm

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The Covid -19 virus has wreaked havoc on all of our lives in more ways than one. Outside of the world health crisis that is unfolding before our eyes, it has put many businesses in financial jeopardy that has lingering consequences.

According to a survey from PwC, “The findings show that businesses are prioritizing cash spending, while assessing options for financing and/or deeper pullbacks as they look forward toward a recovery time frame.”

  • 67% of finance leaders surveyed have already taken steps to contain costs as a result of COVID-19.

  •  64% are considering the need for taking further actions on costs or investments.

  •  76% of respondents expect that their business would be back to normal within three months if COVID-19 were to end immediately. 

What does this all mean for you?

Find ways to reserve cash on hand by cut expenses that are not necessary - Now is a good time to take a look at your business expenses to see which ones are absolutely necessary to run your business operations and which ones are just “wants.” If you have your bookkeeping accounts organized this will enable you to see all of your expenses in one quick snapshot so that you can make these types of decisions.

Look for alternative ways to get capital - There are a variety of ways to get financial help during this time of crisis like applying for the much talked about small business assistance loan offered by the government called the Small Business Paycheck Protection Program. This program is a part of the Cares Act and is designed to, “Provide small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible.” Check out the top-line overview of the program on the US Department Of The Treasury website here. I also shared another great resource for obtaining capital in my previous blog post called BlueVine.com.

We are in very troubling times. But the good news is that we have resources to help us to get through this storm together.

Keep IT Sunny!