Time for Businesses to Review and Revise Budgets for 2020

We are in month six of 2020. The halfway mark for some, and year-end for others. We should be thinking about vacation schedules or driving to the shore, but for many businesses, including most nonprofits, June is your year-end and the month to plan your budget for the next year. Some business leaders will have difficult decisions to make as world events continue to affect all aspects of our personal and professional lives.

If your budget is based on a calendar year, and you haven’t already assessed your financial situation, now is the time to look at the financial health of your organization by shifting your priorities and decide if you need to revise your budget for the remainder of 2020.

A budget is more than subtracting costs from income.

• Business owners need to decide if they can or should maintain a place of business.
  • Will their employees continue to work from home as part of your new business model?
  • Is there a need to renew or renegotiate a lease for space?
  • Should you sell off owned properties?
• What will be the mix of sales for the remainder of the year?
• Has there been an impact in the supply chain of product?
• Are you able to maintain your existing employee count?
• Will your new budget include early retirement incentive packages or layoffs?
• Focus on driving income. Are you invoicing more frequently?
• What are you doing about collection efforts?
• What costs can you eliminate or reduce?
• How are you addressing borrowing and repayment of debt in your budget?
• Do you have an emergency cash fund or is your business surviving on credit?

Each business will have different perspectives when they review an existing budget or create a budget for the upcoming year. If you have questions on how to proceed, or how to begin in this new cycle, please know we are available to speak with you by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.