COVID-19 And Accounting
It's inevitable that businesses will be impacted by COVID-19. It's already happening. And if you are a business owner and you haven't felt the effects yet, it's now a matter of when you will, not if. But don't fear, because I've got some great information and tips that will help you prepare and push through this pandemic.
Tax Filing Deadline
The filing deadline will still be April 2020. But the CRA has put in some measures that will help provide relief to those who have been significantly impacted by COVID-19.
The CRA will be providing relief for those who have experienced "extraordinary circumstances" in the following ways:
Extended filing deadline
Canceling or waiving all or part of the penalties and interest
Keep Spending to A Minimum
Limit your business purchases to operating costs only. Essentially, whatever you need to spend to keep the doors open. These types of costs include rent, insurance, wages, utilities, internet, etc. These will differ based on your business structure (brick and mortar vs. online).
Plan For the Future
Let's be honest, it's not a matter of IF this will happen again, it's a matter of WHEN. And the best thing you can do is be proactive. Here are a couple of quick tips that you can begin to implement and think about right away:
Know what your operating costs are.
Set up a cash management system. Most of my clients use Profit First and it has worked wonders for them! But keeping it simple and just allocating any excess cash to different bank accounts to create cash pools for different parts of your business will also work.
Stay positive and learn. Get a pen and a piece of paper, sit down and write out what your main business problems are, how you can improve them and start taking steps to implement those changes.
We're all in this together and we'll only get through this by uniting together. So, for the next 2 weeks, I'm offering a free 1-hour strategy session ($100 value). You can book a session HERE.
In this session, you'll get the following:
Assessment of what your current accounting systems and procedures look like
What tools and software are right for your business
Tips and resources that you can take away and implement immediately into your business.