As the coronavirus continues to impact individuals around the world, the federal government has taken action to ease the burden on businesses that have seen normal operations completely disrupted. Congress passed an ambitious stimulus package, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) offering several new temporary programs, including from the Small Business Administration, to provide immediate relief for businesses and by extension, US workers.
The Paycheck Protection Program (PPP), EIDL Loan Advance, Express Bridge Loans and Debt Relief programs are now familiar tools to provide short-term assistance and intended to ease cash flow crises and allow businesses to remain open. But these programs cannot ensure profitable operations and long-term financial stability.
Business owners must stay ahead of the storm and begin thinking about their next steps:
- What was your strategy before the pandemic? What is the path to getting back to it?
- Do you have a comprehensive cash flow plan in place to help guide decision making?
- What metrics are you using to manage your workforce and ensure operating efficiencies?
- How are you projecting costs and forecasting revenues when the future is uncertain?
In this landscape, where the impact of COVID-19 is not yet fully understood, securing confidence in your business strategy is more important than ever. Understanding cash flow is a critical component of this. Here are some best practices and strategies organizations can consider to put themselves in a better position as they look ahead:
- Prepare a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
- Prepare fully-segmented operating reports
- Refine Budget to Actual analysis and reporting
- Develop a Rolling-13 Cash Flow
Join our team on Wednesday, April 22nd at 2pm PT, for an in depth webinar as we share how you can apply these principals for your businesses and the steps you should be taking today.
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