Creating Profitability During Uncertainty

During these uncertain times, it has never been more important to create profitability. The global pandemic and the closure of most businesses, has caused anxiety surrounding businesses staying afloat. At TGG, we understand how important your business’ profitability is to maintain, especially right now. Here are a few tips to creatively increase your profitability when you may not be able to run your business as usual:

  • Pay your Accounts Payable Slower: If you can delay the timeline on your outstanding payments, you will have more cash on hand to deal with present issues. When you have cash on hand, you don’t need to be taking on any debt. This reduces your interest costs, and allows you to use the cash when you need to.
  • Negotiate Internet Expenses: Contact your internet provider to renegotiate your internet services. You should be doing this on a yearly basis, with or without a global pandemic. Most businesses are willing to negotiate, especially during these uncertain times. Remember, it never hurts to ask!
  • Maximize your Utility Usage: Currently, a lot of companies are working remotely. If you are not in your office, call your utility provider to either shut off usage, or reduce it to the lowest possible rate. If you are in your office, be aware of what lights are on, when you use the utilities, and when you should be shutting things down. Certain times of the day have higher rates associated with them, so do your research and be strategic about your utility usage.
  • Refile your 2018 and 2019 Taxes: The CARES Act allows businesses to refile 2018 and 2019 returns and accelerate their depreciation schedules. This allows for businesses to decreases their tax liability. So, you save money, you get a refund, and you get more cash on hand. When you have more cash on hand, there is little need to borrow, which means fewer interest costs. You can use this money in places you really need it.

At TGG, we understand that navigating this uncertain time for your business can be difficult. We want to help. Our outstanding teams of four collaborate with your business to create transparent and easy to understand in your financial reports. Contact us today to see how we can help your business thrive through this uncertain time.

This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.

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