In a recent interview, leading CPA Pauline Ho, head accountant at Laus Consulting, explained what business owners can do to keep their business afloat during COVID-19. —
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When asked for a comment, Ho said, “Many business owners are understandably having a difficult time resuming operations and making profits during the corona pandemic. Here are some things you can do to ensure that your business doesn’t go under during these uncertain times.”
According to Ho, the first step is to gain a thorough understanding of the business's current financial position.
"There's a decent chance that your business's financial situation is drastically different from what it was before COVID-19. So it’s vital to examine all incoming and outcoming expenses to determine where to cut waste, if you can repay any outstanding debt or loans, and whether or not to keep employees.”
“If you see that you have a serious cash-flow problem, then you can eliminate any unnecessary monthly expenditures such as orders for office supplies and/or furniture, costs related to employee training, and charitable donations.”
After painting a financial picture, it's essential to understand which government assistance options are available for small businesses during this time.
When asked to elaborate, Ho said, “Since the beginning of August, the Paycheck Protection Program - which was a federal program designed to be used for expenses such as payroll and rent - has stopped taking new applications. For businesses that need extra financial support to weather the corona health crisis, there are still options out there, such as SBA- Economic Injury Disaster Loan Program. Depending on where you’re located, state and local county governments also offer relief measures that your business may be eligible for.”
Another vital thing that business owners should do is to review their taxes claiming all legitimate business deductions to ensure minimum tax liability.
“Oftentimes, small business owners are unaware of the deductions that are available to them that could help minimize their tax liability and put money back in their pockets. It’s always a good idea to work with a competent CPA who can leverage the tax system to the particulars of your business,” she said.
“If you’re unsure whether or not you’re taking the right steps to keep your business afloat, then get in touch with an experienced accountant who can walk you through more cost-cutting measures and potential loan options during this unprecedented time,” she commented.
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