Being a Small Business owner, you already face a multitude of challenges whether it is Operations, Sales and/or Marketing. With the Covid-19 pandemic, we are facing a lot of issues in a very short time. The government has been very reactive in making new policies to support people in Canada however we need to educate ourselves of these new policies and initiatives.
The purpose of this article is to tell you some of the benefits you are entitled to and how to take advantage of it. For those of you who are self learners, you can access everything you need to know as a Small Business owner here: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Supporting_Canadian_Business, https://www.bdc.ca/en/pages/special-support.aspx?special-initiative=covid19.
Before we get into the tips, here are some headlines which you need to be aware of first!
- Personal returns — The deadline for filing T1 returns that were due on April 30, 2020 has been extended to June 1, 2020. Individuals expecting a refund or benefits should file sooner if possible, as the Canada Revenue Agency (CRA) will process refunds.
- Trust returns — For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.
- Income tax payments for all taxpayers — The CRA will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to income tax balances due, as well as instalments and no interest or penalties will accumulate on these amounts during this period.
The following is a list of Tips which you can use starting today!
- Update your Financial Statements & Get in Touch with an Accountant
- It is important for us to not panic rather plan from this point forward. This is a crucial time where you need to pick up the phone and call your accountant. I am an accountant and you can reach me at 647-906-7175
- List Possible impacts on your Business & Develop Mitigation Strategies.
- Now that we are more aware of Covid-19, how can we strategize next steps for your company, it’s employees and the consumers who buy your product or service
- What is your Business’s Financial Health at the moment?
- Here you determine, what your cash flows are looking like and how can you leverage borrowing from the government to ensure your operations continue as is but not affect your business’s growth in the long term
- Re-do your budgets with new assumptions
- Since no one saw Covid-19 impacting our economy as it did, what else lies in the future which can have a similar impact like this. Can you plan better knowing this will happen? What would you do differently if you knew in January where the economy was heading?
- Think Digital
- This pandemic has changed the way businesses operate. By forcefully having employees work from home, new work from home strategies are created to ensure efficiency of the business remains.
- Prepare a Contingency Plan
- If this situation were to take place again in 10 years, instead of you and your staff worrying about what to do next, you simply activate your contingency plan.
- Measure Everything
- When businesses leverage the Data from their company and industry, they are more aware of the goals that need to be put in place & achieved to further grow the company!
- Do a Reality Check on your Business
- Is this the Business you dreamt of running? Is this a good time for you to pivot into something which is more relevant with the trends now? Are you happy? These are all important questions to self assess, reflect and then grow.
- Where can you cut costs
- Though cutting costs can be difficult, it is a part of the business cycle. When the business is not doing well, you need to re-assess where the money is being suspended and what is the Return On Investment
- Plan, Plan, Plan!
- In this downtime, it is extremely important for everyone to be as organized as possible. This is the perfect time to start planning for the future. Set 3, 6, 9, and 12 month goals personally and for your business. Think, Plan, & Execute.
As always, I am one call away to help you with any of your Accounting & Consulting needs. Having experience of 10+ years as a Certified Management Accountant, I can help you weather-the-storm. You can reach me by phone at 647-906-7175 or by email at firstname.lastname@example.org