2020 has been a roller coaster ride for many businesses during a truly unprecedented time. All industries and sectors have been faced with a worldwide pandemic, economic uncertainties, new government regulations and political unpredictability. But a new year is right around the corner and it’s time to take a step back to act instead of reacting. Here are five simple things you can do in 2021 to start your business on the right path in the new year.
- CARES Act. Consult with your tax advisor on any changes in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that may apply to your business. For example, the CARES Act allows for greater depreciation of qualified leasehold improvements as compared to earlier legislation.
- PPP Forgiveness. Schedule your deadline to submit the Paycheck Protection Program (PPP) loan forgiveness application. If a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred.
- Contract Renewals. Check for evergreen provisions in your client and vendor contracts. An evergreen provision automatically renews the contract unless notice to terminate is provided. It is important to identify any such provisions if there are plans to discontinue doing business with a client or vendor.
- Data Security Plan. Start your company’s data security plan. A written plan is what your business will rely upon if a data security incident occurs. IRS Publication 4557 provides a useful checklist of security measures for starting a plan.
- Trademark Control. Perform a search of any unauthorized use of your trademarks either through an online search or by paying a monitoring service to do it. Policing against unauthorized use is one of the more important responsibilities in maintaining a trademark.