The COVID-19 pandemic is impacting both businesses and individuals. Stambaugh Ness is closely monitoring the ever-changing situation in order to provide you with the most accurate and appropriate guidance. This is unchartered territory and while there remains uncertainty on the full extent of the impact on both you and your business, we are here for you professionally and personally. Please reach out to us with any questions or concerns as we navigate this situation together.
SN has and will continue to provide resources to assist you during this global situation. We encourage you to visit this page for updates.
A Hierarchy of Cash Flow Management Recommendations
Managing cash flow can be challenging during the best of times, much less during a crisis. As we find ourselves in the COVID-19 global pandemic, cash flow is not only a challenge, but one whose magnitude we have never experienced before. While the full impact remains unknown, there are many things that businesses can do now to protect and improve cash flow.
There is no sugar coating it, nearly every business will in some way be impacted by this epidemic, but mitigating that impact and damages not only helps your own business, but has a trickle effect on other businesses, communities, and the global marketplace.
Below is a hierarchy of cash flow management recommendations including things you can begin implementing immediately, items to consider next, and ones you should approach with caution due to their aggressiveness. Please note that these are meant to be a guide, every situation is unique and seeking the advice of professionals in this type of situation is strongly encouraged.
Previously Recorded Events
Paycheck Protection Program & Forgiveness
SBA’s Paycheck Protection Program (PPP) has stopped accepting applications, and funds are making their way to small businesses across the United States. Attention is now turning to how to administer the use of the PPP funds to achieve the best possible outcome in relation to cash flow and forgiveness. The program allows for total loan forgiveness through authorized expenditures per the loan agreements; however, there may still be amounts that will require repayment if a business is unable to satisfy the criteria for full forgiveness.
To help businesses prepare, we’ve provided some suggestions on the accounting for PPP funds as well as high-level forgiveness considerations. This summary is not intended as a dive into the details of the forgiveness mechanics, that’s a separate topic warranting its own forthcoming summary but will provide you with an overview.
The Right Expertise to Meet Your PPP Forgiveness Needs
For businesses that have been approved to receive or have already received funds, the next question to ask is how will you calculate your loan forgiveness. The benefits of PPP loan forgiveness are too important to risk mistakes being made. We can help you navigate the compliance requirements of the loan forgiveness program. SN has team members available to take this burden off of you so you can spend more time running your business.
Whether you need assistance with rationale and documentation of your PPP eligibility, perform the calculation for loan forgiveness and compiling supporting documentation, guidance on the maximization of PPP funding, or develop future cash inflows and outflows, Josh is ready to help.
Contact:
Chad Bumbaugh, CPA | Managing Director, Entrepreneurial Services Group
Steve Snyder, CPA, CCIFP | Director, AEC Group