COVID-19 has negatively impacted most people. There are very few of us who can say their financial situation has improved in the face of this pandemic. Whether it is a loss of a job, stock market investments, or the loss of a loved one, we are all feeling it in one way or another. So we are all asking the question of how to recover from financial loss and how does a CPA help to minimize these losses. 

How a CPA Can Help Their Clients Minimize Loss

The economy or other outside factors that you cannot control influence your finances. However, a good CPA knows how to maneuver your finances in ways that use economic pitfalls to your advantage, or at the very least, how to reduce loss. Some of the services Chandler & Knowles CPAs offer that can help individuals or businesses as they are attempting to recover from financial downfalls:

• As an individual, a CPA can assist you in planning to purchase a home, make a budget, plan for your future, get out of debt, protect your loved ones in the event of your death or serious illness, recover from job loss or income reduction, and more.
• As a business, a CPA can assist you in reorganizing and determining strategies for success, making long and short-term goals, how to meet goals, obtaining financing for recovery and growing, risk assessment, understanding your assets and liabilities, cash flow, and more. 
• The goal of every CPA is to ascertain that you have a successful financial journey.

Expedite Financial Recovery 

If you are struggling with loss, you may feel overwhelmed and confused. A CPA can assist as you navigate how to recover from financial injury. Knowing the right steps in the proper order is vital to economic recovery. Also, it is essential to understand the pros and cons of each decision. 

Things to remember:

• Pay debt back as quickly as possible, particularly loans or credit cards with high-interest rates.
• A home equity loan or refinance may be a better way to pay back more significant amounts and get a lower interest rate. Keep in mind that if you default on this loan, you will lose your home.
• Borrowing against your 401(k) is an option as well. Just remember that a loan has to be paid back according to the terms. If it isn't, it is converted to an early distribution and has huge tax implications.
• Check with your creditors to determine if you can defer payments. Many companies are offering a 2-3 month delay without penalty. Make sure you understand the conditions of the postponement. 

Contact The Team 

Chandler & Knowles, CPAs use a strategic method called Lifetime Economic Acceleration Process (LEAP). This plan includes dividing the financial products into categories: Protection, Savings, and Growth. This system enables us to continually monitor your goals and how well your money is functioning for you and your future. Contact us today to get back on track with your financial growth.