Financial Considerations for your Practice as a result of the Covid-19 PandemicMar 18, 2020
These are certainly trying times we are facing with the COVID-19 virus. Please don’t feel like you are alone in this – we are here to help! There is a ton of information floating around about the length of this pandemic & the best way to deal with it. We don’t want to speculate on anything & we are hesitate to provide information prematurely. However, it’s becoming evident we will have to deal with this sooner than later and we certainly prefer being proactive than reactive.
Crossroads Tax Advisors was built on cutting edge technology to service your business. As a result, we are well suited for uninterrupted service to you. Our employees, like so many Americans, will work remotely and will not be limited with how we service you.
Stay connected to your state dental association website, they can be very helpful with how they’ve implemented CDC Guidelines. Each state will likely enact their own unique regulations for business activity and this can change daily at this point.
We don’t want to tell anyone what is best for them and their practice, but we’ve collected good bits of advice from organized dentistry, financial advisory partners, and legal constituents. We have done our best to share these ideas below, however, we recognize some may not be relevant to you or applicable.
- Create a plan for limited operation or a temporary shut-down. We recommend categorizing your team as emergency or non-emergency personnel. For the emergency personnel, they would be on call for any emergent patients. Do you need the office manager to come in for an hour each day/week to catch up on admin duties? Keep it to a minimum.
- Clean out the non-essential items from the office immediately: magazines, brochures, pens, and items that are readily shared.
- Work with the team on having the same language and assurances when communicating with patients on office safety protocol and be mindful of “social distancing” around the office. Educate Staff to ensure patients understand that infection control has ALWAYS been paramount in the office and you are taking steps to ensure that continues at a high level.
- Collaborate with your marketing partner on new patient communication that might go out, updating your patients on current office protocol and what to expect in the future.
- Layoffs due to reduced practice hours will be common across the country. Each state is different, but most have implemented emergency unemployment rules to help in this situation.
- Don’t forget to ask if YOU are eligible for unemployment benefits as well
- You may need to classify your team as “standby” with the State to waive the job search requirements for them to get unemployment benefits. Standby status means you will employ them again once “normal business” resumes. You may not need to do anything for them to get similar status with your state though. Please note the length of these benefits as they vary from state to state as well – some are 8 weeks & some are more.
- Appoint a staff member to track all cancellations and make a communication plan to reach out to these patients as we see a greater sense of normalcy. It will be imperative to get patients rescheduled as soon as things begin returning to normal.
- If you are closing the office, make a patient communication plan to disseminate and reschedule as needed.
- We like to see enough cash in the practice to cover 30-45 days of overhead & a line of credit in place for these exact situations.
- You may want to look into a Business Interruption insurance policy for situations like this after its passed.
- Our banking partners have discussed many options to assist. There aren’t any formal products to offer or items to roll out just yet; however, keep in touch with them for available relief
- A business line of credit should also be utilized to help cover expenses in the event you reduce your schedule or need to close. If you do not currently have a business line of credit, see if one is available through your banking partner.
- Continue to monitor and, if possible, delay large purchases for the time being.
- The funding of the employer portion of your 2019 qualified retirement plan(s) does not need to happen until your taxes are filed. This includes your safe harbor, profit sharing and any cash balance contributions (if applicable).
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