Reassess Your Financial Position – 4 Pointers
In light of the events over the recent weeks and months surrounding the global Coronavirus pandemic, individuals, business, and not-for-profit organizations are facing harsh realities. There is a great amount of uncertainty hovering over what the next months and years will look like. Many will recover, but some won’t. It is a time like this where individuals, business, and not-for-profit organizations can have rare moments of clarity and reassess what their financial position is now and what changes need to be made to address the uncertain future.
- Establish your current financial picture
The first step is to develop an accurate (perhaps brutally accurate) picture of where you are right at this very moment and what the short-term future picture is. Gaining an accurate understanding of every aspect of your balance sheet is a crucial first step – “what are all my assets and liabilities?” But you will next want to shift your view to forward-looking. Revisit that 13-week cash-flow forecast. When was the last time your P&L forecasts and projections were updated?
2. Cash is king
Never forget – “Cash is king”. The above exercises will ultimately enable you to dial in on your current and projected cash positions and could provide indications as to your ability to weather the storm or the need for further creativity.
3. Managing receivables and payables
Look internally at your accounts receivable and payables listings. Are there any surefire customers where you can collect ASAP? Are there any vendors that are lower priority compared to others? Managing these two balances could prove to be a much-needed source of capital.
4. Seeking outside help if needed
Consider looking outward. Your CPA and bank can help. There are SBA loans (one that is potentially forgivable), as well as State loans that are available to get through these hard times.
Contact Us with Your Questions
If you have questions or need help please contact our professionals at The Innovative CPA Group at 203-489-0612. Or contact us online. Please refer to our COVID-19 Resource page that provides information on multiple relief options. https://www.innovativecpagroup.com/covid-19-updates/