Updated: May 11, 2020
The other day we briefly touched upon assessing your situation and getting a good idea of where you’re at (good or bad). Today, as part 2 of the finances, let’s review your Accounts Payables. Being able to pay your bills is something I’m sure that you’re very concerned (and rightly so) about. Not only does this include your typical vendors and lenders to whom you owe but also can include your utilities and internet provider.
Have you created a list of all debts you owe, including to whom, the amount owed, and the due date? Review this list and determine which ones are most important, then set aside funds based on their due date. Can you contact them and request a deferment (maybe 60, 90, 120 days?) of your payments? If they say yes, great (and be sure to get that in writing).
If they say no, how can you negotiate with them? Can you afford to pay them AND pay your team members (including their benefits)? What does your contract with the vendor/lender/creditor say? Is there any language about a “force majeure”? And can you negotiate that there are no penalties for this situation?
There’s also the Keep Americans Connected Pledge (https://www.fcc.gov/keep-americans-connected) – it’s an FCC initiative to ensure that Americans don’t lose their broadband or telephone connectivity as a result of these exceptional circumstances. And while you’re at it, you may as well look at your office lease and see if there’s anything that can be done.
Most importantly, don’t wait to pay your payroll taxes. As an employer, you’re required to pay these in the normal fashion – there’s no extension but there are penalties and interest for not paying them.
Well, that’s it for now – see you in a couple of days! Be sure to leave comments. I encourage it – even if you disagree. While every effort has been made to provide valuable, useful information in this post, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.