Cash Flow Management – And Much More – In These Unsettling Times

PBO Advisory Group’s CFO, Francesca San Diego, was recently asked by the Association of Corporate Growth – San Diego Chapter to participate in a webinar on “How to Navigate the Challenges of Cash Flow.”

The presentation, in which Fran shared the panel with two other speakers, provided valuable information, no matter what industry you are in, regarding case flow issues and also touched upon several other important, timely topics.

Some of the highlights that Fran spoke about include:

Prioritize Your Expenses

  • Create various scenarios which reflect different potential revenue streams and the expenses tied to them
  • Add-in long-term staffing needs and overhead expenses for each scenario
  • Also look at long-term projects and consider scenarios that put them on hold

None of us knows what the future holds. Scenarios that you build today will help you tomorrow. As one (or more) of these scenarios plays out, you will have a clear plan for making decisions regarding your expenses.

Communication Leads to Information

  • Now is the time to increase your communications
  • Ongoing communications will keep your finger on the pulse of your business environment as well as potential opportunities and challenges
  • Talk often with customers, vendors, supply chain, stakeholders and trusted advisors
  • With the information they provide, update your scenarios accordingly

Payroll Tax Credits

  • Preserve cash through federal payroll tax credits
  • These credits let businesses defer payroll taxes until later this year and into 2021
  • Plan to pay back these taxes in the future, as this is not a forgiveness program

Payroll Protection Program Loans

  • Unlike tax credits, the PPP is a forgiveness program (though it does not cover the forgiveness of tax payments)
  • The PPP can be used in association with payroll tax credits
  • A percentage/the entire amount of your PPP loan may be forgiven, based upon your Full Time Equivalent (FTE) and other factors
  • If you have received a PPP loan and have not determined your FTE, you should so immediately

These recent PBO Advisory Groups blog posts will help you determine your FTE and understand its importance:

Getting Funding

  • Minimizing your cash flow is a good step toward getting private (and some government) funding
  • Develop a plan to present to funders that focuses on business opportunities
  • Each situation is different so make your plan specific and detailed
  • Your plan should be like one you would write in ‘normal times” and include
    • Best Practices
    • Forecasts
    • Actions for Moving Forward

We’re here to help. The above information provides a general overview. Please contact any member of the PBO team and we will be glad to help you better understand your specific situation.