Among many other things, small businesses in Louisiana also face the threat of natural disasters. The financial challenges that come after a natural disaster strikes can inflict psychological damage as well. Many business owners find it hard to cope with the post-disaster challenges, which often cause them to make the wrong decisions with costly mistakes.
This is where the guidance of a Pineville, Louisiana CPA can help. Hiring an experienced CPA can help you, as the business owner, to adapt better strategies to manage problems. If you need money to recover from the losses, a financial expert can also help you secure loans and grants from the Small Business Administration (SBA) and FEMA.
Understanding financial relief options after a disaster
Small businesses in Louisiana have financial assistance options for recovery after a disaster. Two of them are SBA and FEMA.
FEMA
FEMA provides financial assistance to individuals and businesses affected by federally declared disasters. If your business is eligible, you can apply for repair costs, temporary housing, and other disaster-related expenses. It is recommended that small business owners try for FEMA before they apply for other financial aid.
SBA
SBA stands for Small Business Administration. These loans typically provide up to $2 million to repair or replace damaged property, inventory, and equipment. SBA loans allow businesses to maintain their operations while recovering from the disaster. To be eligible, you must provide documents to demonstrate your financial condition.
How accurate record keeping can help after a disaster
Accurate financial record keeping is important for all kinds of businesses all year round. However, they become even more important when a disaster strikes. It is important to document all the losses and damages so that you can provide a clear picture to the insurance company. It makes the claims process easier and faster.
An accountant in Louisiana can help your small business maintain a well-organized record-keeping system. Proper records, including receipts of damages and expenses incurred during the disaster, are essential for filing claims with insurance companies. These will also be required when you file a claim with government agencies for funds.
That being said, having proper financial records following a disaster is also important to understand the true impact of the disaster and plan for the future. With the help of detailed records from before and after the disaster, business owners can determine their losses and adapt recovery strategies accordingly.
Post-disaster budgeting for future preparedness
Once you have applied for government aid and insurance funds and taken care of the immediate losses, it is time to think about the long term. A long-term budget allows your business to recover financially while also preparing for any unforeseen future risks.
Since natural disasters can be unpredictable, it is important to increase the company’s financial resilience and have emergency funds in place. A CPA can help you build an effective financial plan that does not only address the current needs but future challenges as well.
This is because financial recovery can be very comprehensive. It is not only about returning to the same state as you were before the disaster; it is also about planning for business and its long-term success. This can include changing the existing strategies and operations. A CPA can help through all of these processes by providing their own expert financial insights.
Don’t let disaster destroy your business!
From funds to strategic planning, there are a few things that can help you rebuild your business after a disaster strikes. Natural disasters, such as hurricanes, affect Louisiana more due to the state’s geographical location. Therefore, small business owners should plan accordingly.
If you are from Louisiana and a natural disaster has damaged your business in some way, you may be stressed. The first person you should reach out to is an accountant, as they are helpful in the claims process and long-term planning. Hire one today!
