Updated: Apr 30, 2020
It does not matter how many letters you have behind your name, how many Executive Trainings you have attended, or how many years of business management you have under your belt. Nothing could have prepared the business world for this pandemic. With so much uncertainty, there are a few opportunities individuals and businesses can consider to move forward through this wave.
Walk through your most recent tax return with your tax preparer to identify new income sources
You might be able to source income from tax provisions included in the CARES Act. A few of these provisions include:
Economic Impact Payment advanced tax credit (stimulus checks),
Haulted student loan payments (temporarily),
401(k) withdrawal penalty relief,
Retroactive delay of excess business loss limitation,
Business credits related to employee retention and employee student loan assistance, and
Expanded net operating loss and certain depreciation incentives to reduce business taxable income.
This is a good time to consult your tax preparer and walk through tax opportunities that might provide financial benefit for your personal and/or business needs.
Invest in your online services
While Stay Home orders are in place, digital content is being consumed at extremely high levels. Internet use has increased more than 70%, and streaming has increased more than 12%. Most businesses will need to invest in online platforms to generate income. A few online investments include:
Purchasing ads to be promoted on a podcast, social media, and other online platforms,
Teaching a class on Skillshare or other learning site,
Creating need-based digital products (budget worksheets, "how to" tool kits, etc.) to sell online.
Apply for federal, state, local and private funding
Funding at all levels is available to eligible business owners. The media has highlighted the federal loan programs such as the Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), however, many other funding options exist at the state, local and business level. See my blog "COVID-19 Economic Relief for Small Business and Nonprofits" for more insight on available funding options.
Create a cash flow plan.
Cash flow is the income and assets that come in and out of your business. This is a good time to review your budget and financial statements to source revenue you might be able to get in the door now. For example, a review of your balance sheet might identify assets you can sell today that could provide cash to pay your bills this month. You might also identify accounts receivable from which you can retrieve cash from vendors.
Other financial relief options include filing for unemployment, seeking a temporary position with an essential business, or simply asking your community for support.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before engaging in any transaction.