March 2020: we are going through a historic period of financial uncertainty. The economic consequences related to the Coronavirus is pushing the world into a weird dismay. Currently, we are talking about an economic crisis that could be worse than the one we had in 2008. All the entrepreneurs affected by this unusual situation are asking themselves how long is it going to last, but more importantly: is it going to be possible to go through this crisis while keeping my business prosperous and successful?
To keep you posted, our experts accountants suggest you some key points to handle your company during the COVID-19 crisis.
Take Care of Your Mental and Physical Health
First of all, there is no need to panic: quite the opposite, panic harms productivity. Stress prevents you from being focused and concentrated. Take care of your fitness and play safe staying away from the virus.
It is more than never the time to be the healthiest you can be: this slowed period of time is an excellent opportunity to take care of your health in order to get out of this crisis more productive and motivated than ever.
Furthermore, for your mental health, do not hesitate to do video conferences with friends and family. At T2inc, we suggest to break the isolation by talking to your friends and family. It is also a good time to work on future projects for your business.
Take Advantage of the Economic Government Support
The government announced many exceptional actions to help the businesses during this crisis. Take the time to look into all the options that have been implemented in order to verify if you are eligible to for one or several options. Here are some examples:
- We already know that the Business Development Bank of Canada (BDC) is going to offer loans in order to help the companies affected by the COVID-19;
- There is federal help for the self-employed;
- If your company works in exportation, Export Development Canada (EDC) offers to help you;
- Also, as of March 23rd, the firms will have until July 31st to pay their taxes.
Those grants could really help you with your company.
Use an Accountant’s Financial Advice for Business
To be handling the crisis smartly, you need to keep a good financial health. To start with, update all your receivables and payable accounts. Try to contact your clients as soon as possible in order to establish payment agreements with them. Do the same with your suppliers.
Then, update your account book so you can have a clear picture of your finances. In addition, if you want to ask for a grant or governmental help, you are going to be asked up-to-date financial statements. Do not neglect this part. And of course, do not hesitate in contacting us, experts in accounting, for any question!
Prepare a Business Budget
It is going to be necessary to make a reasonable budget: a cash flow model. This template will allow you to know how long your company could survive during this financial uncertainty period. With the actual financial datas of your company and the projections of your incomes and outcomes, you will be able to have a good idea of the reality and take reasonable decisions regarding your business.
As accountables, we always suggest to use a conservative approach. This way, it forces you to be careful. We prefer to consider a catastrophic situation in order to prepare us for the worse case scenario. The idea is not to be discouraged, but rather to be ready to face any possibility.
Be awake and proactive : necessary to be handling a company
Indeed, some specialists are talking about a crisis that could last from 12 to 18 months. Hopefully it will not be the case, but let’s be ready to get through this economic storm!
If you need financial advices during this crisis, contact us now. At T2inc, our experts in accounting and tax specialists are there for you. We are available to support you during this crisis! Let the force be with you, entrepreneurs: we are tomorrow’s solutions!
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
