There are a number of small businesses that are considered essential during the pandemic and many other businesses that have been able to continue with a number of restrictions. Business owners face challenges every day and the knowledgeable experts at Mark Dicus & Company have provided the following tips to help small business owners navigate their way through some of these challenges and keep their business afloat.
Many projects have experienced delays that range from a complete shutdown, personnel issues, or materials and products being on back order or delayed indefinitely. If you have a contract with your suppliers, check the fine print for any clauses that may address production and delivery issues. Contracts often have certain clauses that that need to be met before you can break the contract. It is a good idea to contact an attorney to make sure that you are fulfilling any legal requirements on your end to ensure that you do not breach the contract and open yourself up to potential litigation.
Businesses operate efficiently with a number of employees but what do you do if your employees are self-quarantining or uncomfortable with certain aspects of their job such as proximity to another employee? These and other factors could lead to your business inevitably delaying or breaching a contract that you have engaged with a client. Make sure that you stay educated on current employee labor laws to stay compliant with restrictions and mandates that have been set in place to your employees safe. A number of laws firms are providing guidance and regular updates on these changes. Sign up with your legal representative for email alerts to ensure that you stay informed.
Building Material Price Increases
Material delays and supply chain issues can unexpectedly lead to higher pricing on certain materials which will inevitably lead to increased pricing for the final product or service. Some contracts may address these issues. Being knowledgeable about the contents and legal ramifications written into the contract will help you stay one step ahead of the game. Discuss the aspects with your attorney to ensure you are compliant and have the right documentation to plead your case in court should the need arise.
Accounts Receivable Management Process
Send your invoices out as soon as you can and keep a close eye on your accounts receivable to protect yourself from cash flow issues. If you are working with a client who is taking a long time to pay you will need to address those issues as soon as possible. Areas to take into consideration include your current cash flow, andhow much credit you can afford to extend to long time customers. A number of business owners are stopping or delaying projects but if you can plan accordingly and anticipate unexpected challenges before they arise, you have a better chance of making it through a variety of situations.
Bookkeepers, Accountants & Business Consultants in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
To learn more about professional accounting, business consulting and tax services and how it can benefit your business, contact the knowledgeable experts at Mark Dicus & Company today, for all of your accounting needs.