What COVID-19 and the Paycheck Protection Program Have Taught Us About Running a Business
I have talked with a lot of companies that were not able to take advantage of the Paycheck Protection Program or PPP. That is because they either did not understand the program, didn’t have the accounting information required, or didn’t get their application submitted before the money ran out.
My discussions with contractors reiterated my feeling that all companies need a great relationship with their accountants and bankers. Your accountant or banker should have called you as soon as each of the program’s details became known. My banker reached out to me long before the day arrived that you could first apply for the PPP loan. He also told us about other SBA programs that they thought some of my companies might be eligible for.
It is my understanding that the companies with tight banking relationships were the first to get their PPP applications submitted. Quickness to apply was the key to getting your money. If you bank online or otherwise do not have a good relationship with your banker, you could be missing out.
You also want to have a tight relationship with your accountant. Your relationship should include regularly scheduled meetings to go over your company’s financial reports. As I have said before, most companies have tax preparers and not accountants. You know the difference by how often you speak to them during the business year. If they do not occasionally call you during the year with questions about how you are running your business, then they are tax preparers.
Thank You and Be Safe
James R. Leichter