During these uncertain times, it has never been more important to create profitability. The global pandemic and the closure of most businesses, has caused anxiety surrounding businesses staying afloat. At TGG, we understand how important your business’ profitability is to maintain, especially right now. Here are a few tips to creatively increase your profitability when you may not be able to run your business as usual:
In May, the Treasury Secretary announced that all SBA PPP Loans of over $2 million will be audited, and all loans under that amount may also be subject to an IRS audit. In the article below, John Milikowsky, the founder of Milikowsky Tax Law, breaks down what you can do right now to limit your risk of an IRS audit. The main takeaway is to get your financials in order right now. If you can track all of your expenses and prove where you allocated your funds, you’re already in great shape. Already applied for your SBA PPP loan? Download our TGG PPP Loan Forgiveness Tracker. Need a more in-depth look into your financials? Contact our team to help your business through this uncertain time.
Read the Milikowsky Tax Law Article here:
As state-wide lockdowns continue to be extended, we are just beginning to understand what reopening the economy will look like. Our recommendation? Small businesses should use this time to prepare their business for optimal operation.
Unfortunately, during times like these, it’s important for small businesses to prepare for the worst. If you understand where your business stands and the impact coronavirus will have on your operations, you will be well-equipped to plan for the future.
As companies proactively adjust their business operations in the wake of COVID-19, there are few things to consider in regard to crisis management. All businesses should have a crisis management plan in place to assure their success regardless of the unforeseen circumstances that may arise. Here are a few steps to take to create success in tough times:
Many people do not understand the differences between the varying roles of your accounting team. For example, Controllers and CFOs hold similar roles with a few key differences. As your business continues to grow, the ability to produce accurate, efficient financial statements will be increasingly essential to your success. This starts with hiring a rockstar accounting team. Here’s the best way to do it:
The coronavirus pandemic has created a need for businesses to become more focused than ever on their business expenditures and daily operations. The same can be said for the financial crisis of 2008 — when the economy takes a hit, organizations dial things in. Implementing the right survival strategy allowed many businesses to come out of the recession stranger than they were before. Here’s how they did it:
It’s time for TGG’s Client Spotlight! We have truly enjoyed building our relationship with Hydrate IV Bar over the past 2 years. Prior to TGG, Hydrate IV Bar relied on a CPA firm to produce annual financial statements, but Owner, Katie Wafer found that she wasn’t getting the timely or accurate financial information she needed in order to make educated business decisions. Through partnering with us, Katie discovered the power of The TGG Way™ in getting her the critical information she needed to run her business by the numbers.
Do you have your financial plans in order post-COVID-19? Financial planning can be difficult even in normal circumstances, and with the uncertainty surrounding the future of businesses, financial planning is even more challenging. The typical 5-year plan you use, that is based on accuracy, consistency, and predictable planning cycles, can no longer be used to determine the future of your business. Therefore, financial planning needs to take on a new, systematic approach to account for all potential crisis situations.
Many small businesses that are considering their future growth have considered hiring a fractional team to come support their everyday business functions. Fractional models offer many benefits to business owners that choose to go that route. These models can allow your company to get expert assistance at a lower price. Outsourced services are meant to assist and support your company as you grow and expand your business. How can your small to medium-sized business benefit from fractional services?
Cash flow forecasting can be a lifesaver for your business during uncertain times and preparing financial forecasts in advance is always the best option. But if you have been working to navigate COVID-19 without any forecasts, remember — it’s never too late to start.
These forecasts provide your team with a better understanding of your business and how well it is functioning. This information allows you to make timely, well-informed decisions without excessive effort. Wondering where to begin? Here are our top tips for cash flow forecasting:
On July 11, TGG’s founder and CEO, Matt Garrett partnered with SBDC @ UCI Beall Applied Innovation to discuss the ways you can grow your business through entity structure and formation. Being a business owner is one of the greatest achievements in Matt’s life and he has created a business structure that aligns with his mission and vision for TGG. There is a lot of uncertainty surrounding opening your own business, how can you create a business structure that will succeed for years into the future?
For businesses looking to expand their business without tacking on the steep cost of hiring an in-house CFO to their annual budget, an outsourced CFO hire can be the perfect solution. In this article we explore the advantages of hiring an external CFO, so you can make a more informed decision for your company.
The economic effects of coronavirus are still being determined, but it’s safe to say that most businesses have been affected in one way or another by this pandemic. As businesses attempt to protect their employees and keep their companies afloat, business owners have had to adjust their daily operations in order to succeed. How can we learn from history and better prepare supply-chain leaders to succeed in uncertain times?
Managing a company’s resources can feel like a daunting task for some business owners. The challenge becomes even greater for company’s with a high level of annual revenue and a large customer base to account for — without proper financial management, you could be leaving millions of dollars in value on the table.
As the effects of Coronavirus continue to unfold, we have seen small and medium-sized businesses take a hit. The government has worked to create funding to support these businesses during this tough time.
As the effects of coronavirus continue to unfold, you may have decided that it is time to sell your business and move on. As a business owner, it is vital to have a plan for a possible exit as soon as you start your business. How can you start planning for your business’s future? Here are a few tips:
As many small business owners expected, the SBA PPP loans have proven to be an excellent option for funding during this uncertain time. However, many small businesses were blindsided by how quickly these funds were depleted and became enraged after learning that large corporations like Shake Shack and the Lakers received these loans before most small business owners had an opportunity to apply. Here’s how that happened and what the SBA is doing to fix it:
At the beginning of the SBA PPP roll out, there was a significant amount of confusion surrounding what information was required from small businesses to apply, including what paperwork was necessary and what precisely that paperwork needed to show before they got the chance to apply.
Navigating the MSLP loan requirements and details can be overwhelming for some companies. The FED recently hosted a webinar to help us better understand the program and the requirements behind it. Here are some of the key takeaways from the webinar:
The SBA PPP Loan funds have been replenished recently and are currently being disbursed among many small businesses throughout the U.S. Recently, Treasury Secretary Steven Mnuchin announced that all SBA PPP Loans of over $2 million will be subject to an audit. That being said, businesses who take out smaller loans may also be audited, but every business that takes out a loan of more than $2 million can count on a visit from the IRS within the next few years.
As we begin to look beyond the coronavirus economic lockdown, the government gave us a plan to end lockdowns and stay-at-home orders within the next few months. President Trump has provided governors with a three-phase program intended to safely revive America’s economy, which is called “Opening Up America Again.”
While the Coronavirus outbreak has been unexpected in every way, its impact on our global supply chain and local distributors is unprecedented. If your company, or its key suppliers, carries limited raw material inventory and relies heavily on Asian sources of supply, you are at high risk of disruption, according to several new economic analyses.
A controller is someone responsible for all accounting-related activities within an organization. Financial Controllers report to a firm’s CFO. Their duties include the preparation of operating budgets, overseeing financial reporting, and performing essential functions related to payroll.
A Work In Progress (WIP) report consists of an accounting schedule that’s a portion of a company’s entire balance sheet. In best practices, each accounting period has a calculated work in progress report that complies with GAAP principles. These reports are required on projects where the Percentage of Completion (POC) accounting method is used. The WIP report typically consists of current period and project-to-date financial metrics that explain each contract the company is working on, however, the format does change from company to company.
Staff Accountants are the backbone of any good accounting firm and handle the majority of basic accounting functions for your company. When you have great Staff Accountants, your business will run more smoothly, and your CFO will be able to make the best possible decisions. When it comes to accounting, every small decision matters in a big way for the company as a whole. Here are a few qualities to look out for when hiring Staff Accountants:
Small businesses are among the most vulnerable groups to fraudulent activity. These businesses are more susceptible and face a greater risk of fraud because typically, they have employees working across many different departments as their job description, there is a closer relationship between the staff and owners, there are few oversight procedures in place, their accounting department has less expertise on financial functions, and there is a larger impact on the bottom line of a small fraudulent event.
How can you prevent fraud in your small business? Here are a few tips to help you keep your company safe:
As the effects of COVID-19 continue to unfold, many companies have found themselves in a situation for which they were unprepared. Without implementing proper crisis preparation tactics, companies will continue to suffer, as businesses deal with future unexpected occurrences. Being prepared for a potential supply chain disruption, allows companies to work proactively rather than having to react without time to adequately consider their options.
No matter how emotionally attached you feel to your business, it is essential to start considering an exit strategy as soon as you open your doors. An effective exit strategy will allow your company to take advantage of timely opportunities, such as an acquisition, an IPO, or a lucrative partnership. Planning for future changes by using these types of strategies will also give you the flexibility to set aggressive goals and pivot accordingly as you reach them.
On May 4, 2020, the SEC announced temporary conditional relief for small businesses that have offered Regulation Crowdfunding offerings in the past to allow them to raise additional funding through Regulation Crowdfunding investment offerings under more expedited and less strict criteria.
Small businesses are doing everything they can to overcome the economic hurdles created by the COVID-19 outbreak. It is clear that every business will be impacted in some way, but restaurants and bars have been hit especially hard—and suddenly— by the pandemic.
While chains like Denny’s and IHOP have the cash reserves in place to pay workers—even during the shutdown—small, non-chain restaurants across the country were left feeling abandoned and desperate when faced with mandated closures. In response to the crisis, a slew of programs, grants, and resources have begun to take shape, along with a regularly updated Hospitality Industry Alliance COVID-19 Facebook group. Here are a few of the solutions we think will be most helpful for owners of restaurants, bars, and other small businesses:
With the new normal becoming a reality for everyone, how can we prepare our businesses to survive and thrive during this unprecedented time? TGG Founder & CEO, Matt Garrett, and Stacey McKibbin, CEO of Consilio Consulting discuss the importance of the numbers in your business, and how to better understand how to come out of the COVID-19 pandemic on top.