Many businesses have felt the impact of the recent COVID-19 pandemic. Whether referring to reduced operations or recently furloughed staff members. Managers and stakeholders are dealing with a significant amount of fiscal pressure. This is why many firms have looked towards government assistance programmes, in order to deal with such issues. However, proactively overseeing these services can be confusing for businesses already grappling with staffing and employment challenges. It is wise to outsource these requirements to professional third-party firms. Let us examine the types of government assistance, which may lessen the impact of the current situation. Plus how a qualified accountancy firm can better manage staff-related furlough payments.
A Quick Overview of Government Assistance Possibilities
Funds received by a company is generally defined as grant income is defined as funds received by a company, without the requirement for any financial commitment (repayment). It is important to mention that the majority of grants will require the business, in question, to report its activities. Sometimes the funds associated with a grant can only be spent on specific activities (determined by the programme in question). Having said this, there are a handful of grants specifically related to the recent COVID-19 situation. These include:
- Coronavirus Job Retention Scheme (CJRS).
- The Coronavirus Business Interruption Loan Scheme (CBILS).
- Coronavirus Large Business Interruption Loan Scheme (CBLILS).
- Bounce Bank Loan Scheme (BBL).
- Various business rates relief options.
Each of these grant programmes intent is to address specific situations and directly attributed to losses suffered as a result of COVID-19 complications. Managers will need to examine the criteria of each scheme to determine which represents the best option.
The Use of a Professional Accountancy Firm
The schemes mentioned above are relatively new and as a result, there is a high chance that management will not be familiar with the schemes exact functions and stipulations. For instance, the business in question will be responsible to accurately report information including (but not necessarily limited to):
- The nature and amount of the grant.Portions of the grant may represent income.
- Additional forms of government assistance that may be present.
- Grant to compensate incurred costs (e.g.paying a furloughed employee).
In conclusion, it is clear to see why use of a professional chartered accountant is an appropriate choice.
SRG LLP has been in constant operation since 1887 and are aware of the challenges faced by businesses who find themselves grappling with the COVID-19 pandemic. This is why we encourage you to contact our London or Glasgow offices at your convenience. We will be happy to provide the insight that you require.
