The world is burning and we're going to put out that fire | Saldo accounting

Good morning everyone, the times are a bit exciting right now and it rises from day to day, depending on what shows up in the box.
You've heard it before and you'll hear it again, right now you are the most important, and I mean all of you who are actively working with your businesses today. This is when you are needed most and for many of you it will be tough. But you are not alone, we at Saldo are by your side.

Saldo will help you ease the pain during this journey, because it's all about relief and survival. We are fighting alongside you. If we haven't already contacted you, raise your hand, we will come to the rescue with our solutions and suggestions.
And please, we don't charge for this initial conversation.

How will companies cope, well that question is not easy to answer and not everyone will cope. But asking for help can be the difference between life and death. We're talking continuously with our clients right now and trying to be there to support, to find solutions, to take advantage of the few things that the government has put in place to support. And there are things to do, not world-revolutionary things, but things that make a difference. When your sales are drained, it's hard to have countervailing power, and in the end you may just be left with bankruptcy. But let's offer some concrete suggestions for action before then.

• Review the income statement for unnecessary costs. The single most important point. There are always costs that are not really needed, remove them.
• Look at the workforce, can/must you lay someone off or even lay someone off or can you renegotiate someone's salary. Sad things to do, but necessity has no law at this time.
• What does your personal finances look like, you can lower your own salary.
• Can you negotiate discounts on the purchase of goods, or find other suppliers?
• Find out how much the company needs to turn over to break even.
• What is the payment capacity of your accounts receivable, can you change this so that payments come in faster.
• Are there any opportunities to sell more, new markets, new products, etc. In times of crisis, we usually have the most creative solutions. Highlight and execute these.
• Rent - talk to the landlord about reduced price/dispensation of payment.
• Loans - talk to lenders/leasing companies to see if they can hold off on repayments during these times.
• Change F-tax, bring it down to zero for 2020. Review 2019 and request early payment if there is a lot of money to be recovered.
• A control balance sheet must be drawn up if half of the share capital is used up, and this must be monitored regularly. You do not want to end up with personal liability for the company's debts in the event of bankruptcy. IMPORTANT!!
• Develop an action plan and follow it up.
• Develop a liquidity forecast.

If you need help with any of the above, please contact us.

Proposal from the government:

• Reduction of the employer's contribution to 10.21% for March-June. This applies to companies for the first 30 pcs in the company and a salary up to 25,000 SEK per month. Then it gives a relief per salary and month up to a maximum of 5,300 SEK
• Short-term permits.
• Rent reduction. Temporary discount for rental costs in vulnerable sectors such as retail, hotels, restaurants and certain other businesses. This is a subsidy of SEK 5 billion to be used for rent reductions, with the state paying up to 50% of the fixed rent. But then the property owner has to be willing to reduce your rent
• Corporate emergency – lending of capital where the state takes 70% of the risk and the bank the rest. The first year, no interest is charged. A final step when the greater debt burden is a disaster when the business does not go with the plus. But still important to consider.
• Liquidity insurance with the Tax Agency - deferral of tax, employer's contributions and VAT, even for annual VAT for 2019. Still a debt to be paid and it may become a personal one for the Board. Just a word of warning. Proposals for not incurring personal liability on these taxes exist, which makes it easier of course.
• Another liquidity insurance that is really good. This applies to sole proprietorships, partnerships and limited partnerships. The entire profit for 2019 can be put into an accrual fund (i.e. no tax to pay for 2019), this can then be used against any losses in 2020. . As always, there is a ceiling for this accrual fund - namely SEK 1 million.
• Elimination of the waiting period deduction.
• The state takes over sick pay responsibility for two months.
• Entrepreneurs who become unemployed will be able to put their business on hold in 2020, allowing for unemployment benefits and making it easier to get back on track after the crisis.

It is important that we all talk to each other, share and help as much as we can. The more companies we can save, the better off our country will be when this is over. And we'll be better equipped to deal with the next one. Because a virus will come back, we know that.

Together!

Mattias Segerbrand

Creative Leader
Saldo Accounting
0708-30 34 20
mattias@saldoredo.se