• Troy Renbarger

Do Not Surrender

FIGHT or FLIGHT? COVID19 is affecting every industry in every community. Businesses all over are faced with challenges, fears, and a sense of the unknown. How do we navigate these times that we do not understand? Great question. Like a shark, we must always be moving and FIGHT through these tough times. If we stay still and FLIGHT, we will perish.

We must rely on the information that is available and constantly evolving and changing during these trying times. It has always been said, hindsight is 20/20 vision. When we look back on this time period in the future, we will realize that we made some great decisions under this pressure. Without a doubt we will realize the errors of some ill-advised decisions as well.

If your business is slowed, or stopped completely, then take the time to beef up your best line of defense to be able to make the decisions that impact you and your business. The best way to do this is make sure your accounting records are up to date. Your bookkeeper, controller, CFO, and CPA are the trusted advisors you need to navigate through these troubled waters. Your business’s financials need to be accurate and in order, because they are paramount for responding quickly to the options you have available to you. Real time financials will put you in front of your competition when making business decisions during these unprecedented times.

1) SBA Loans. There are currently two loans being offered and time is of the essence to apply. (SBA 7(a) Paycheck Protection Program PPP & SBA (7b) Economic Injury Disaster Loan EIDL). While the initial applications are easy to apply for, the back-end documentation can be a challenge if you are behind on your accounting work. Be prepared and have your documents ready to go. The bulk of the information needed to complete the loan application comes from your Balance Sheet and Income Statement.

2) Business Operations. We are living in a time in which there is a significant strain on normal business operations. Some businesses have closed, while others are running skeleton crews to get by. Take this time to do cash flow forecasts, scenario analysis, and basic cost accounting to understand the complete picture of doing business.

3) Tough decisions. Make cuts? Get creative and increase sales? In this environment, cost cutting is inevitable. Depending on the scenario, and depending on the SBA assistance that you qualify for, some expenses can be considered essential and forgivable under the terms of SBA Loans. Don’t shoot yourself in the foot and cut expenses that could help you repay loans, but at the same time be cognizant that not all expenses are good ones. Use your financials to make the hard decisions. Break it down to “money in…money out”.

4) Guiding Light. When the dust does settle and business resumes, the rush will be unparalleled, which will present new challenges. There will be aspects of your business that you will use that you never thought you would have too. Only the smart business owners will prevail. Credit checks on sales will need to be implemented, as well as extending credit and payment terms to your best customers. Remember, everyone is in the same boat with limited cash resources. Let your financials and your business history, guide your instincts, in building your business. Trust and compassion are key, but have analytical data to help guide these necessary changes.

Accurate accounting has never been more important in your business than it is right now. The financials is the treasure map to guide you through this turbulent time. Technology, real time artificial intelligence programs, exist to help get information entered promptly and accurately. We are here to help provide solutions to your pressing situations. Schedule a time for a virtual conversation to explore those options.


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