Financial Considerations During Our Present Medical & Economic Crisis
Financial Considerations During Our Present Medical & Economic Crisis
Coronavirus has done a number on the health of our world, our economy, the way we live, where we go, the stock market and what we do to protect each other, our lives and our businesses.
I wanted to share with you a few thoughts as we dive into the new paradigm we call life. During these times, more than ever, it will be more critical to look to the needs of others, our families, our neighbors including those we don’t know and those we do.
It is critical to change the way we think
forever as any obstacle before us is one in which we can learn how to do life
and business better & I have a few thoughts I would like to share toward
that end.
Avoid
all unnecessary expenses seeking to focus your monthly budget only on what is
required to get by.
Do not add any new debt. Depending on your
available cash and your debt’s interest rates it may be a good time to consider
debt liquidation. Great care should be exercised during this time to ensure you
maintain liquidity in both your personal and business accounts.
Stay at home. Teach your children how to sew a
button, balance a checkbook, invest, buy a home, get insurance. There is so
much we can share with our children. We have always had the incentive to do so
and now we have the opportunity with so many if not all of our children at
home.
Get creative. Consider client incentives. Pay
attention to cash flows both in and out of your business and personal accounts.
Forecast. Forecast. And Forecast again! The more
we seek to anticipate tomorrow the better we will be prepared for it.
Consider key employees and any special needs
across the board. As a business owner keep in mind the IRS only requires one to
pay a fair and reasonable salary based upon profits and position. During times
of breakeven or less consider suspending your own wages until we all reach “the
other side of the curve.”
Evaluate and seek to source new income streams
for your business. Seek to fulfill new needs as well as those previously
ignored.
Look to reduce hours and compensation
accordingly in addition to seeking at all times to streamline and operate
efficiently and remotely.
Make critical decisions before you are
face-to-face with them for in so doing you will have more options and resources
to address key manpower and resource needs.
Hear and listen to health officials and protect
all those most vulnerable but as in aircraft put the oxygen on yourself so you
will have the strength to reach and help others.
Ponder and carefully consider all decisions as
they will impact the very lives of many as what we do in these times will help
refine and define our personal and business legacy.
I will be praying for you all.
“Be quick but don’t be in a hurry. Don’t mistake
activity for achievement. Failing to plan is planning to fail. Things work out
best for people who make the best of the way things work out.” — John
Wooden
John Dillard CPA, www.HisCPA.com
