My Three Gifts to You
As a year like none other draws to a close and we enter a new year with hope for brighter days and more “normalcy,” I’d like to offer you three gifts to help you get and keep your business on track and aligned for growth.
My first gift is a three-part series of videos about cash flow and cash flow forecasting – which is simply the process of predicting your business’s cash flow. A cash flow forecast is one of the most important financial tools a business can implement yet most business owners don’t predict their cash flow. Many have what they consider “intuition” about it but if that intuition is not monitored against actual data, you may be making important business decisions that are not founded in fact. Remember, you can run a business at a loss, but not without cash – it’s the lifeblood of any business. You always need to know where you stand and where you’re headed.
Visit my You Tube Channel to view all three videos in the series:
- Video 1 – What is Cash Flow and Why is It Important?
- Video 2 – The Difference Between Profit and Cash Flow
- Video 3 – How to Prepare a Cash Flow Forecast
Be sure to work with your tax accountant right away to prepare for the 2020 tax season. Review this Small Business Tax Preparation Checklist, courtesy of H&R block.
If you received Paycheck Protection Program (PPP) funds you’ll want to do a review of the expenses to which you applied those funds and make sure you have adequate documentation to support your claims for forgiveness of the loan. According to the SBA, borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. Check out this article from Plante Moran for more information about PPP loan forgiveness and tax consequences.
Finally, and perhaps most importantly, I remind you of the gift of time. As we learned this year, it is one of our most valuable assets, along with our health. I hope you’ll put yourself and your family first this holiday season and take some time to unplug and reset. Get some perspective on the year we have just lived and adjust your mindset for a positive start and success in the new year. Take a look at what you’ve learned and assess what changes you’ve made in your business and personal life – perhaps at first of necessity – that have worked for you and that you want to implement long-term as you move forward. Especially, take time to look around you and appreciate what is good in your life. I leave you with these thoughts…
May this year’s challenges leave you stronger and wiser.
May today’s blessings fill you with gratitude and hope.
May the coming year bring you joy and abundance.
Merry Christmas and Best Wishes for the New Year!