The implications of COVID-19 are serious with myriad variables. As your wealth advisory firm and consultant, we are committed to providing ongoing updates and actionable strategies during this time of uncertainty – a time when you are most vulnerable to blind spots. Every client has a different situation – practice, cash flow, capacity for risk, staff, practice overhead, etc. For these reasons, we created our “COVID-19 PREPAREDNESS” kit. You will find many suggestions and possible strategies to illuminate blind spots and help you navigate the coming weeks and months.
Contents of the “COVID-19 PREPAREDNESS” kit covers information on such topics as:
Managing Cash Flow
Cash flow is essential when times get tough – “cash is king” goes the axiom. We don’t know how long the situation will affect us so being prepared is always the best first step.
If possible, file a tax extension; business and personal.
Discontinue payroll – For the doctor, spouse and any children. Instead, take only required draws (shareholder distributions) from the business for cash at home. This will minimize payroll taxes, federal taxes, and 401(k) deferrals through this volatile time. These can all be made up in the future when cash flow resumes.
Stop all dental and office supply purchases – Recurring purchases and any non-essential items. Communicate with your vendors.
Contact your banker – Many banks are already offering interest-only payments on practice and/or building loans for up to 3 months. If you are making excess payments (above the minimum required payments) on any personal or business loans, this should be stopped until cash flow stabilizes.
If needed and available, access lines of credit on the business or personal residence. If you do not have a line of credit, contact your banker for emergency lines of credit.To read the full version download our kit
Bouts of volatility can be nerve-racking for most everyone. Panic driven selloffs often lead to lost opportunities when markets eventually rebound. This results in “sub-par” performance over time. One of the most important parts of our work is meaningful conversations with you that include reviewing objectives, timelines, capacity for risk and other elements which were part of the reason you decided to work with us in the first place. Equally important is being able to share metrics and planning techniques that help you avoid the tunnel vision that understandably takes over during turbulent times.To read the full version download our kit
Staffing And The Relief Package Bill
While staff costs are the largest single expense in your business, it is also the hardest to reduce, especially during hard times. We all care for our staff, but we also must manage own set of challenges since essential office staff needed for emergencies would have to work while other employees would be not working and get full pay. Also, remember staff members still employed are not eligible for unemployment.
You should not allow staff to bring children to the office so they can continue to work. Because of health concerns, this should not be an option under any circumstance.
We understand this is a decision that will be unique to each office. You must make what you feel is the best decision for your business and your staff. Remember, once business resumes, you can always help staff out with additional time off or bonuses. However, without a solid timeframe, we do not recommend making firm promises at this time.
Disability Income and Business Overhead Expense Insurance – If you become sick, then you may have coverage from your long-term disability insurance policy if you meet the applicable waiting period. If the illness impacts your ability to work for the applicable waiting period, then you should file a claim on your disability income insurance policy. If you have disability business overhead expense insurance and are ill, or otherwise disabled, for the applicable waiting period, then you may also have coverage from this policy.To read the full version download our kit
Pragmatic Guidance For Dental Practices
The ADA has acknowledged how dynamic the novel coronavirus (COVID-19) is and its likeness to Influenza and Respiratory infections. Under the agency’s guidance, we are advising our practices to follow the same infection protocols required when encountering those with known symptoms of a communicable disease. Ensure all staff are educated on how to properly and comfortably execute these necessary precautions.
Initiatives such as patient screening processes, isolation protocols, and social distancing should be implemented to reaffirm the safety of your team and patients. Some examples of social distancing would include removing magazines, toys, and other entertainment items so you can maintain the strict isolation measures that are necessary during this time. You may also find it beneficial to remove every other chair from waiting areas.To read the full version download our kit
As we continue to monitor the dynamic developments of COVID-19, here are some things to consider when communicating with your staff. By effectively displaying leadership in a time of need, we inspire our teams to exude the greatness we know they are capable of. We are here for you as a resource if you need any assistance during this unique situation.
Additional resources in the kit include:
- Scripting for teams
- Practice Guidance for employers
- Templates for office closures/reduction in hours
- Compensation guidelines