It’s pretty obvious now that most small businesses are struggling due to COVID19 and paying your employees on time is starting to get difficult. Businesses had to cut hours or let go of good people. There are those that have made the decision to keep their staff together but the next challenge is keeping up with paying salaries when making revenue is down.
Here are some options that you can do when you’re having a hard time paying your employees.
6 ways to increase cash flow when you can’t make payroll
1. Ask your vendors for longer payment terms.
2. Offer a discount to new customers who pre-pay for services.
3. Speak to your accountant or bookkeeper.
4. Consider financing your invoices.
5. Enable an overdraw on your bank account.
6. Talk to your investors.
3 things to do when there’s no way to avoid missing payroll
1. Talk to your payroll provider.Puri, Ritika “9 options for paying your employees when you can’t make payroll.” July 2020
2. Apply for a short-term business loan or grant funding.
3. Make up for the lapse in payroll at a later date.
Silicon Harbor Business Services is based in Mount Pleasant, SC. We provide solid, practical advice to small business owners and select individuals. We work with Quickbooks Online, Quickbooks Desktop and Quickbooks Enterprise.
For a complete list of our services, please click here. Reach out to our team of Business Consultants at Silicon Harbor Business Services in Mount Pleasant, SC if you have any questions about online bookkeeping or business consultancy. We’d love to hear from you!