Debt relief is something many businesses are struggling with as a result of the COVID-19 pandemic. While borrowing money is a critical component of many small companies, doing so in these trying times can become even more difficult. When businesses accumulate too much debt that they can’t afford to pay back, they find themselves in a challenging position of requiring assistance to get their finances on track. But once they’ve gone too deep into the red, getting out of that hole can often be virtually impossible. Unfortunately, if you have ever been in a dire financial situation, here are a few tips to get your business out of the red and back on track — even amidst a global pandemic.
Inventory All Your Debt
First, we advise you to make a list of all your debts. Once you can see all your debts in a streamlined fashion, tackling them can become a bit manageable to grasp. Be sure that your debts are all appropriately organized can allow business owners to fully take stock of what they owe and where these debts reside. The reality is, business owners should try to pay off all their debts within 12 months of starting them to ensure a financially successful business.
Tackle High-Interest Rate Debt Immediately
When you have a lot of debt, it can be challenging to determine which debts need to be tackled first. Understanding the difference between the various interest rates between all your debts can help make debt relief easier and more manageable. After months and months of unpaid high-interest debt, you can find yourself in a much bigger hole that already exists. It’s this high-interest debt that cripples small businesses in the long run.
Hire A Certified Public Accountant
Getting a CPA into the mix can be a massive benefit to your business. CPA’s will help small business owners assess their finances and get them back on track. They can educate business owners about the best financial practices, so they never find themselves in this position and can still keep their business alive.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services are aimed at decreasing your taxes and increasing your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.