{"id":133,"date":"2020-03-17T14:54:58","date_gmt":"2020-03-17T14:54:58","guid":{"rendered":"https:\/\/www.sz-cpas.com\/blog\/?p=133"},"modified":"2020-03-23T15:01:41","modified_gmt":"2020-03-23T15:01:41","slug":"the-next-phase","status":"publish","type":"post","link":"https:\/\/sasserath.vglmarketing.pro\/index.php\/2020\/03\/17\/the-next-phase\/","title":{"rendered":"The Next Phase"},"content":{"rendered":"

By\u00a0Alan R. Sasserath<\/a>, CPA, MS<\/strong><\/p>\n

We hope this finds everyone safe and healthy.<\/p>\n

To some of us that owned our own business in 2001 (9\/11), 2008 (Financial Crisis) and 2012 (Hurricane Sandy), the current economic situation looks and feels familiar, not good, but familiar.\u00a0 Maybe there is more uncertainty now?\u00a0 I don\u2019t know.\u00a0 I do know that just like those periods of uncertainty and darkness, we will recover.\u00a0 Whether the recovery is slow or fast, now is not the time to panic, but rather a time to plan and execute.\u00a0 For many of us, 2020 went from a time to thrive to a time to survive over a matter of days.\u00a0 For those in that situation, we need to put a plan in place to get us through this period of uncertainty until we are in a place where we can, once again, thrive.<\/p>\n

There is no one-size fits all answer to the issues that we face, however, there are some things that we all must do to keep moving forward.\u00a0 Below are some key points that everyone should address as they apply in no particular order.\u00a0 Please note that the foundation to all of the factors below is communication.\u00a0 Communication with clients, vendors, staff\/team, finance, legal, \u2026\u00a0 Communication should come from one source and be consistent and honest.<\/p>\n

Customers<\/u>:\u00a0<\/strong> What are they going through and how will the current events affect them?\u00a0 Are you in a position where you can help them through their issues?\u00a0 Now is the time to get closer and not more distant.<\/p>\n

Vendors and Supply Chain<\/u>:\u00a0<\/strong> Continue to monitor the supply chain and be realistic with your expectations of your own output.\u00a0 Do you have commitments?\u00a0 What are they? What needs to be done about them?\u00a0 If your cash flow budget says that you will need to adjust payment terms, have you discussed this with them?<\/p>\n

Cash and finance<\/u>:\u00a0<\/strong> What does your projected profit and loss statement look like?\u00a0 What are your fixed expenses?\u00a0 How can they be reduced or utilized in another fashion?\u00a0 What is your current cash position?\u00a0 What does your cash flow budget look like \u2013 short and long term?\u00a0 What access do you have to credit facilities?\u00a0 Once you have these answers, have you spoken with your bank?\u00a0 Are there any programs that can help you get through this challenge?<\/p>\n

Team\/Staff<\/u><\/strong>:\u00a0 Your team is what will get you through this challenge.\u00a0 You need to be consistent and honest with them. \u00a0There will be some tough decisions to be made in the coming days\/weeks.\u00a0 Our experience is that if there needs to be a lay-off or an hours cut, to do it swift, to do it at one time and then once it is done, call everyone together and let them know that it is over and we are prepared to move forward.<\/p>\n

IT Management\/Security<\/u>:<\/strong>\u00a0 As many of us move to some or all of our team\/staff working remotely, security risks increase. \u00a0What can be done to minimize the risk?\u00a0 Two-factor authorization?\u00a0 Are your IT advisors giving input to minimize security risks?\u00a0 Understand the risks and act accordingly.<\/p>\n

We continue to prepare to work remotely, but the majority of us continue to work out of our main office.\u00a0 This may change as more information becomes available.<\/p>\n

We also continue to monitor government updates and programs:<\/strong><\/p>\n