Set up a dedicated accounting line item for coronavirus costs like cleaning supplies and remote work planning. This makes it easier to document expenses for government aid or insurance claims, and later isolate the pandemic's impact when recasting financials for loans or a sale.
I want to share tips with you as quickly as I discovered some information. I just heard a tip and I actually cannot credit the source because I don't know who the source was. But the tip is this is to add a line item in your accounting system to track the costs associated with the coronavirus. So set up a line that says coronavirus, a GL entry or an expense item and any expenses you incur related to the coronavirus needs to be tracked there. So supplies you need to buy for cleaning or maintenance or anything related to the coronavirus. Also time spent. So if you are dispatching your people remotely and you're planning and you need to incur it expenses or something like that, anything related to managing the coronavirus. The reason here is two components. One is if there's government assistance that comes in or your insurance covers this, you you can very clearly disseminate what the expense is associated with this. The second component is that in the future, should you be seeking a loan, should you be seeking to sell your business at some point and there's your history, your financial history is reviewed. There will be a blip here and now. You can account for it and do what's called a recast to show what your business would be like if this part was removed out. So consider that. I'd love to see your comments and feedback around this. Is there other ways to track this that even are more effective? But just want to share those ideas with you right away so you can enact them in your business.
