We are living during a period of trying, uncertain times. The current outbreak of the Coronavirus disease (COVID-19), has had a significant impact on the way we go about our daily lives. From how we work, to how we live, to how we relax, no aspect of our lives has gone untouched. With a potential recession on the horizon and so much unknown about how we will move forward as a society, what does that mean for your business? Now more than ever, you will want to turn to your financial advisor to help you come with a plan.

Why Your Financial Advisor Is Essential in Times of Uncertainty

1. They keep you informed on current events and developments.

Changes can happen quickly in this time of global crisis. The government may implement policies to help provide relief for taxpayers. Your small business may be eligible for special incentives that were not previously available.

Your financial advisor can help to keep you aware of these changes, keeping you aware of your options. Changes that result in fiscal policy relief for taxpayers will likely result in new deadlines to comply with any resulting reporting changes.

2. They can oversee both your business and personal finances.
Turbulent times will not only impact your business but your personal finances as well. Your financial advisor can work with you to set up a plan for your business and a plan for your family finances. This can provide you with the peace of mind that both your company and your loved ones will stay protected no matter what lies ahead.

3. They’ll help you manage cash flow.

The Coronavirus disease (COVID-19) is impacting the way that people go about our daily lives. Large events are being canceled, travel has become restricted, and even schools are being closed for the foreseeable future. If your small business is in a related industry (or even an indirectly related one), you may already be experiencing a negative impact on your bottom line. Your financial advisor can help you create a plan to curb expenses and evaluate income projections to help you keep your business moving forward.

4. They’ll save you time and money.
Now more than ever, your focus needs to be on the best way to keep your daily business operations stable. Allowing your financial advisor to take the reins of your financial situation will not only save you lots of time but also provide you with peace of mind that your business economic affairs are under control.

5. They can help you plan for emergencies.
The developments related to the COVID-19 outbreak are happening so quickly that no one can anticipate what tomorrow will bring. Your financial advisor can help you to establish sources of emergency funding that may be needed to help your business operations through loans, grants, or other funding sources. They can also help you to prepare the financial statements and other documents that may be necessary as a part of the application process.

What Can I Do to Prepare My Business Now?

With economic uncertainty on the horizon, here are a few things that you can do now to prepare yourself and your business.

Look for Additional Revenue Streams

Are there ways that you can diversify your business to bring in additional revenue? Can you offer a new product or service that is a complement to what you already have?

Do any of your clients make up a significant portion of your business? Now might be the time to look into bringing on new clients or expanding into new markets to help reduce your risk should you lose a major account.

Manage Debt

If you have a significant debt load, the effects of a recession could magnify the impact on your business. If you have cash on hand, look for ways to create an emergency fund, while also working to reduce your debt load. Taking action now can help to avoid getting behind on payments or even bankruptcy should the market take a downturn.

While uncertainty can make you nervous, it does not have to be a cause for alarm. Having a financial advisor on your side to help you navigate the unknown can help to ease your mind, allowing you to focus on running your business.

If you have any questions regarding the impact of the Coronavirus disease (COVID-19) on today’s current financial situation or you would like to learn more about our services and how we can help, please feel free to contact us for more information.

Melissa Hou, CPA, MST, is a tax manager.   In this role, she works with clients in a wide variety of industries including distribution, manufacturing, sales, business and professional services, real estate and non-profit organizations.  She specializes in rental real estate, real estate development and real estate investment.  She joined the WNDE team in 2015.
Melissa was born in Taiwan and grew up in Los Angeles.  She is fluent in Mandarin Chinese and English.  She earned a Bachelor of Arts degree in Business Economics at UCLA, and a Master of Taxation at Golden Gate University.  Accounting was not her first career choice, she said, but she agreed to try it out for three months upon her father’s insistence.  Melissa remarked, “He was right.  I absolutely loved how challenging and dynamic accounting is.  There is an endless amount of learning and growth available.”
Her areas of expertise include: partnerships, s-corporations, c-corporations, individuals, and trusts; planning, quarterly and year-end tax provisions, research; business property tax, sales tax; non-profit organization tax compliance; and Quickbooks.  She is a member of the AICPA and CalCPA.
Interests outside of the office include spending time with her boyfriend and dog, hiking, attending concerts and traveling both domestically and internationally.

Taxpayers who still file paper returns may find now is the best time to switch to e-file. Last year over 85 percent of taxpayers filed their taxes electronically. There are really no good reasons to paper file, said WNDE Partner Candace Huie, unless a filer is specifically prohibited from E-filing.  E-file is the fastest and safest way to file.
Here are the top seven reasons a taxpayer should file electronically in 2017:

1. Accurate and Easy. IRS e-file is the best way to file an accurate tax return. The tax software helps taxpayers avoid mistakes by doing the math for them. It guides users through each section of a tax return. E-file is easier than doing taxes by hand and mailing paper tax forms.
2. Safe and Secure. IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from refund fraud. This new effort has put more safeguards in place to make tax filing safer than ever before. The IRS has processed more than one billion e-filed returns safely and securely.  Candy said, “Tax software companies and the taxing authorities are on the cutting edge of security for the efiling process.  Taxpayers have a higher risk of exposure to identity theft when mailing their paper filed returns.”
3. Convenient and Often Free. Taxpayers can e-file for free through IRS Free File. Free File is only available on IRS.gov. Taxpayers may qualify to have their taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance offers free tax preparation for those earning $54,000 or less. Tax Counseling for the Elderly generally helps people who are age 60 or older. Taxpayers can buy commercial tax software or ask their tax preparer to e-file their tax return. Most paid preparers have to file their clients’ returns electronically.
4. Faster Refunds. In most cases, e-file prevents mistakes and helps people get their refund faster. The quickest way to get a refund is to combine e-file with direct deposit into a bank account. The IRS issues more than nine out of 10 refunds in less than 21 days – however, some returns need further review and take longer.  Candy noted, “E-filing gives you the ability to track the timeliness of filing your tax return and make getting your refunds much quicker.”
5. Prior-Year Tax Return. Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
6. Health Care Coverage Reporting. IRS e-file can help with tax provisions of the health care law. The software will walk users through each line on the tax form that relate to the Affordable Care Act.
7. Payment Options. If taxpayers owe taxes, they can e-file early and set up an automatic payment on any day until the April 18 deadline. They can pay electronically from their bank account with IRS Direct Pay. Other payment options include electronic funds withdrawal and payment by debit or credit card. Visit IRS.gov/payments for details.

Candy concluded, “E-filing has made the overall tax filing process quicker, more efficient, and much more secure while nearly eliminating the room for “human error” by the taxing authorities when manually processing paper filed returns.”
IRS YouTube Videos:

• Welcome to Free File – English
• IRS Taxes: Three Easy Ways to Pay – English | Spanish | ASL

Share this tip on social media — Seven Reasons Taxpayers Should E-file Their Taxes in 2017. http://go.usa.gov/x9ye3#IRS