We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
Submit an RFP
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
This article was originally published in the Summer 2020 issue of Truck Logger BC Magazine. It has been reproduced with permission.
In an article written for Truck Logger BC Magazine, MNP’s Chris Duncan, CPA, CA, discussed steps forestry businesses can take to navigate the ongoing COVID-19 crisis and the government programs available to manage the financial challenges.
Business Matters: Cash Flow Strategies and COVID-19 Assistance
The forest industry, like many others, is having to balance the safety of employees and their families with the struggle of maintaining a business through the COVID-19 pandemic. From reducing on-site teams to curtailing processing operations and holding virtual meetings, the industry has evolved to meet the new reality.
However, external pressures continue. Timber and lumber export markets hit hard by COVID-19 have slowed to a trickle and new harvest plans are delayed due to the slow down in the supply chain. Financial institutions are bracing for a rise in defaults and many suggest lending rates may increase as a result of COVID-19.
Now is the time to adjust your business strategies to meet your customer needs, keep your employees safe and help preserve your business. The following actions and programs can help position you to emerge and recover from this crisis.
Stretch Cash Flow
A full understanding of your cash flow situation is critical to determine your business’ funding needs.
Reassess your vendor and customer engagement strategies to identify which customers and vendors are critical accounts. Create specific procedures to deal with strategic versus non-strategic partners and optimize payment schedules.
Given income and profitability are projected to be significantly lower than 2019, consult with your tax advisors on the need to pay corporate income tax instalments for the balance of the year to further free up cash flow. The federal government has announced several programs allowing payment deferrals of corporate income taxes, corporate income tax instalments and GST / HST payments.
These deferral mechanisms may help with resolving your temporary cash flow needs. However, be aware the debt is still owed at the end of the day.
The Business Development Bank of Canada (BDC) and Export Development Canada (EDC) have also launched new small- and medium-sized enterprise loan and guarantee programs that will provide up to $40 billion in additional lending. The programs are as follows:
Preserve Your Workforce
Focus on profitability and revenue targets and consider alternative ways to optimize performance in the short term — including reassessing your labour requirements and staffing levels.
The following federal programs provide emergency aid to businesses and may help retain your workforce; make sure to meet their deadlines to qualify:
In addition, contractors who must temporarily lay-off staff due to the economic impacts of COVID-19 may refer their employees to other programs for financial assistance.
The Canada Emergency Response Benefit (CERB) temporarily supports individuals who have stopped working due to reasons related to COVID-19. It provides $500 per week for a maximum of 16 weeks. Applications can be made through the CRA, online or by telephone. CERB payments will be included in the recipient’s taxable income.
During good times and challenging times, successful businesses depend on good teams. Contact your MNP Business Advisor for more information and strategies to keep your business moving forward.
For more information, contact Chris Duncan, CPA, CA, National Leader, Forestry and Forest Products, at 250.748.3761 or
Related Topics:COVID-19; Business Resilience; Business Performance
Suite 2000, 330 5th Ave. S.W.
Find an office near me