Small Biz Daily Publishes John Scully's Article on Creating a Small Business COVID Comeback Plan
In mid-April 2020, the Small Business Association (SBA) introduced the Paycheck Protection Program (PPP) aimed at helping businesses retain their employees during the Coronavirus (COVID-19) crisis. So far, the SBA has approved more than four million loans totaling over $500 billion and given a lifeline to many companies that likely would have gone out of business. Funds aimed at the Main Street businesses landed in the hands of large organizations like the owner of Ruth’s Chris Steak House. Within days of introducing the PPP program, the U.S. Treasury department issued “technical fixes” and clarification to resolve discrepancies.
Uncertainty and confusion is the last thing any small business needs right now. John Scully, practitioner lecturer of accounting and finance, shares his expertise and provides four areas in which small businesses can create order.
- Staff properly for business that's coming in the door now or in the immediate future. Consider staff that can serve cross functions for the near term.
- Watch for PPP rule changes that may come in the next six to eight weeks. Lawmakers have been pushing for comprehensive forgiveness guidelines.
- Identify new sources of credit or cash. Even businesses that are following a stringent budget run the risk of running out of money. Early detective work can help avert anxiety about cash flow.
- Review your business tax planning approach. For income tax reporting purposes, if the company has been carrying forward net operating losses, recent legislation allows these losses to once again be carried back. It’s important to check with your accountant to determine if there’s an opportunity to amend prior year tax returns and obtain a cash refund.
Businesses that focus on stabilizing operations with multiple strategies and under a range of financial scenarios will stand a much better chance of weathering the chaos – and will have much greater odds of returning to business as normal in the post-COVID environment. Read more.