4Thought Blog

4thought graphic - blog 2020

Strategic Financial Planning Steps to Boost Business Post-Pandemic

Posted by Andrea Brady and Andrew Desiderio on Thu, Jul 2, 2020

As businesses look to navigate towards financial health in the changing normal of a post-pandemic world, there are key areas of their business plan to reassess.

The goal, as we endure and ultimately come out of this crisis, is to rebound to better than normal. Because as the pandemic ends —whether in 3, 6, 12 months or more — the world will not look the same.

Businesses that start forecasting the post- COVID-19 landscape —and make plans accordingly—will be in a good position to succeed during the pandemic and beyond. Below are some key areas to to address in planning, and businesses should work with their trusted advisors to ensure a well deep perspective and test the thinking in critical areas.

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Topics: Business consulting, 2020 Coronavirus

Calculating Overtime Costs: A New Method for Employers

Posted by Concannon Miller on Tue, Jun 23, 2020

After decades in limbo, regulations that clarify certain overtime pay practices have been released by the U.S. Department of Labor. The newly finalized rules explain how to calculate overtime pay for nonexempt salaried employees using the "fluctuating workweek" method.

Use of this method to calculate overtime pay currently affects only around 700,000 employees. But these rules "may encourage some employers to switch" to using it, said the DOL. The agency also expects that some employers will move hourly employees to salaried status to take advantage of the new rule.

One potential outcome of using the FWW method is lowering the cost of overtime pay. For that reason, when the rule was proposed, it was criticized by labor groups. In defending the rule, the DOL conceded that while the lower overtime pay scenario could happen, "the same employer could also reduce the employee's earnings by the exact same amount by lowering the employee's weekly rate of pay."

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Topics: Business consulting

Congress Approves Significant Paycheck Protection Program Loan Flexibility

Posted by Concannon Miller on Thu, Jun 4, 2020

There's very welcome news for businesses with Paycheck Protection Program (PPP) loans.

Following on the heels of the House last week, the U.S. Senate on Wednesday passed a plan allowing companies more flexibility on spending their PPP loans.

Highlights include:

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Topics: Business consulting, 2020 Coronavirus

New Lease Accounting, Revenue Recognition Rules Delayed for Private Businesses

Posted by Concannon Miller on Thu, May 28, 2020

There’s some further welcome news for businesses and nonprofits that use GAAP (Generally Accepted Accounting Principles) for their financial statements. There is now an additional delay on implementing fairly cumbersome new revenue recognition and lease accounting standards.

Due to the coronavirus pandemic, the Financial Accounting Standards Board (FASB) voted last week to delay the start of new revenue recognition and lease accounting standards.

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Topics: Business consulting, 2020 Coronavirus

Boosting the Productivity of Remote Workers: Tips for Employers

Posted by Concannon Miller on Tue, May 26, 2020

Even while conditions in some states have improved enough to allow some workers in exile to begin returning to their workplaces, life isn't likely to return to normal for a long while, thanks to the COVID-19 crisis.

First, some employees worried about the chances they could become infected might balk at the idea of returning to their offices even after you've decided that the risk is small and manageable enough to re-open your doors.

And second, some businesses and employees may decide that work-at-home arrangements should be more widely available all the time. As more employees experience a workstyle that doesn't involve a brutal commute but does offer greater flexibility in juggling work and personal responsibilities, you could face strong pressure to broaden that opportunity.

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Topics: Business consulting, 2020 Coronavirus

8 Successful Post-COVID 19 Pivot Tips for Businesses

Posted by Concannon Miller on Tue, May 12, 2020

The novel coronavirus pandemic has caused difficulties for millions of businesses — from family-owned restaurants and niche manufacturers to multinational airlines and oil companies. As the economy slowly reopens across the country, old ways of doing things clearly won't work for most business operations.

But there's a potential upside: Major economic disruptions may provide opportunities for managers and owners who can reject the status quo and "think outside the box." Over the short run, businesses that "pivot" in a timely manner may be able to stay afloat until things decisively turn around for the better. There also may be long-term opportunities to add value and update your existing business model.

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Topics: Business consulting, 2020 Coronavirus

The Post-COVID 19 Business World: How to Find Agility, Resilience

Posted by Concannon Miller on Wed, May 6, 2020

Few businesses have been left unscathed by the novel coronavirus pandemic. Unfortunately, some have been mortally wounded. Some may be living on life support thanks to financial help from the government, but their long-term survival is in doubt. That may not be inevitable, however, particularly for businesses that are proactive.

Business advisors are instructing companies to be resilient and nimble to come out on top. What does that mean for your business? Having deep pockets is one form of resilience. It gives you the ability to endure a sustained revenue drought while still keeping employees on board and your vendors, your landlord and other creditors on good terms.

But resilience is also a state of mind: that is, being able to have faith in the future, think and act creatively under duress to make a better future possible.

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Topics: Business consulting, 2020 Coronavirus

COVID-19 Employee Retention Tax Credit: Can Your Company Benefit?

Posted by Concannon Miller on Thu, Apr 23, 2020

To help curb layoffs during the Coronavirus pandemic, Congress has created a new federal income tax credit for employers that keep workers on their payrolls.

You can’t use both the credit a Paycheck Protection Program loan, but if you missed out on a loan and are working to maintain your staffing levels, the new Employee Retention Tax Credit may be a good option for your company.

The credit amount equals 50% of eligible employee wages paid by an eligible employer in a 2020 calendar quarter. It's subject to an overall wage cap of $10,000 per eligible employee. Here are the details.

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Topics: Business consulting, 2020 Coronavirus

Deferring Social Security Taxes: FAQs for Employers During the Coronavirus

Posted by Concannon Miller on Thu, Apr 16, 2020

There's a CARES benefit that’s not getting as much press as PPP but may be a useful liquidity tool for business owners battling through this crisis.

No matter the size of your business, the CARES Act allows employers to defer the payment of the employer’s share of social security taxes that would otherwise be due from 3/27/20 through 12/31/20 without penalty or interest charges.

These FAQs from the IRS lay out the rules for employers on which portion of the social security taxes they can defer, when they have to be paid, and if and when they can still take tax deductions on them. And if you received a PPP loan from the SBA, read more in the FAQ’s about how this benefit can apply to you.

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Topics: Business consulting, 2020 Coronavirus

Coronavirus Small Business Loans: Three Options to Consider

Posted by Concannon Miller on Mon, Apr 13, 2020

The federal government is now offering several loans to help businesses through the Coronavirus pandemic, including a new loan just announced April 9.

Which loan is right for your business? Learn more about three available options below.

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Topics: Business consulting, 2020 Coronavirus

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