5 Ways to Keep Your Small Business Afloat Right Now

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There is no question that small businesses are the heart of our nation’s economy, and without them our road to recovery after the pandemic will be longer and significantly more difficult. Here are five ways to help your small business weather the crisis:

5. Understand Your Options: If you have been lucky enough to receive funds from the Paycheck Protection Program (PPP) — or if you are still trying to apply — talking to your accountant now is essential. Small businesses need guidance more than ever on the best ways to put that money to use to ensure the long-term health of their businesses while also adhering to guidelines set by the federal government that will determine if those loans will ultimately be forgiven.

4. Tackle Your To-Do List: If you have downtime; use it. Spend this time recalibrating your business or marketing plans. Work on those website glitches you’ve long needed to address but never had time to fix. Get on a web call with your CPA now to see where your opportunities are and what weaknesses can be addressed.

3. Get a Grip on Cash Flow: Your business’s longevity depends on careful cash-flow management, so it’s vital to take stock of all the outflows in your business, such as leases, credit card bills and payroll. Even when you make a profit, you might be caught short trying to pay off debts. CPAs are helping clients with cash flow and funding options, reforecasts of budgets, technology assistance to support their remote work and many other forms of assistance outside the compliance norm.

2. Plan for the Recovery: There will be pent-up demand when the pandemic is history. It’s fair to say a lot of babies might be born in nine months. People who deferred vacations will rebook. People will resume plans to buy cars, do home renovations and go shopping. How will you prepare for the resurgence? A CPA can make sure you are ready to meet the demands when the economy starts humming again. The CARES Act that created the PPP loan program also changed tax laws to allow businesses’ net operating losses going back to the 2018 tax year to be carried back up to five years and carried forward over the next two decades; find out what you how you can business losses and look at their taxes for next year.

1. Take Care of Your People: Establish robust and frequent communications with employees to understand how they are being personally impacted by the virus and provide reassurances where possible about how you plan to support them. Make sure they know what resources are available to them — through government assistance and your company’s support. 

The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association in the Commonwealth dedicated to empowering CPAs to thrive. Founded in 1909, the VSCPA has more than 13,000 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA website at vscpa.com or call (800) 733-8272.