Keeping Your Business Afloat
This is a challenging time for everyone, and it’s easy to get caught up in the magnitude of what is happening around the world due to the coronavirus. Take a breath and remember that we will get through this. We have compiled a list of ideas and helps that can help keep you going through these rough waters.
Find New Customers and Clients
Spend some time generating new leads now so you have some potential customers and clients once things have calmed down. Having a strong presence during trying times can show business leads that you are dependable.
Get creative about ways you can deliver your products or services. Innovation often comes during times of hardship.
Identify Business Challenges
Make a list of challenges your business could face in the coming months. Plan out several solutions for each of the challenges on your list. Since we don’t know how the coronavirus will play out, make plans, but be flexible.
The US Government has been working to roll out financial relief to businesses and individuals to help get everyone though this difficult time. Where it’s prudent, take advantage of government concessions.
The IRS and Treasury Department has confirmed that the federal income tax filing deadline is automatically extended from April 15, 2020 to July 15, 2020.
Taxpayers can also defer federal income tax payments due April 15, 2020 to July 15, 2020 without interest or penalties, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers as well as those that pay self-employment tax.
There is no need to file any additional forms or call the IRS to be eligible for this automatic federal tax filing and payment relief.
If you have a balance due, it is our recommendation to take advantage of the deferment and not pay your tax bill yet. It’s smart to hold onto your funds as long as possible as there is so much up in the air.
IRS has also postponed the deadline to pay 2020 1st quarter estimated tax payments to July 15, 2020.
SBA Loan Options
The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of Covid-19. The SBA has said that the loans can be used to help with fixed debts, payroll, accounts payable and other bills. New guidelines announced this week include:
1.Faster, easier qualification process for states seeking SBA disaster assistance.
2.Expanded, statewide access to SBA disaster assistance loans for small businesses.
The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for each affected small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Applications can be filed via https://disasterloan.sba.gov/ela/.
IRA and HSA Contribution Deadline Extension
The IRS has issued clarification that the deadline for making IRA (Individual Retirement Account) and HSA (Health Savings Account) contributions for the 2019 tax year has been extended to July 15, 2020. This gives taxpayers two extra months to contribute to their future financial health.