Important Updates to Payroll Protection Program, Business Cash Flow and Personal Financial Statements
PPP Loans: 3 Stages
- Application and Approval
- Usage--Loans used mostly for payroll.
- Forgiveness--You can apply for forgiveness any time before December 31, 2020.
To ensure forgiveness...
- Make sure meet the 75:25 ratio of payroll to other expenses (rent, utilities, etc.).
- Paychex and ADP have tools to help you calculate your forgiveness amount.
- Remember forgiveness amount is taxable--you cannot deduct you expenses since that would be considered "double dipping."
Business Cash Flow: "Cash Is King"
- Revisit your cash flow and make sure you have at least 2 months of working capital on hand.
- Many customers are slow paying invoices. You will need a cash float.
Personal Fin'l Statements/Estate Plans
- Now is a good time to create a personal financial statement that identifies your Assets (what you own), your Liabilities (what you owe) and your Net Worth (assets minus liabilities)
- Hire an attorney to create an Estate Plan that outlines how you want your assets to be distributed upon your death with the least possible taxes.
Call our office to help you with improving your financial statements and reporting.
Why You Want an Independent Review of Your Organization’s Financial Statements
Banks, lenders, acquirers and auditors look more favorably at your financials
if they’re independently reviewed or audited
and you’ll likely receive better rates and terms.
Contact us for assistance with your personal and business financial statements.
We offer three levels of service:
Simple compilation of financial statements.
More analytical procedures performed.
International Tax Planning.