According to a recent poll, 50% of company leaders believe their operations will not stabilize from the COVID-19 crisis before the next planning process. The global pandemic has placed a strain on all businesses over the last few months. Not only has it affected the current state of a business’s financials, but it also affects how businesses can plan for the future. So, how can you begin to plan if you cannot predict what is going to happen next? Has your planning process vanished since COVID?
During times of crisis, businesses need to consider the health of their finances now more than ever. Small businesses especially need to ensure they have tight control over their cash flow. In order to understand where your business stands, especially during times of crisis, you should have a cash flow forecast that details where you are profitable, where you need to save in order to prepare for uncertain circumstances.
Cash flow forecasting is something that needs to be done on a regular basis, especially during these times. These forecasts help your company better prepare for various potential outcomes that may occur.
On March 31, 2020, Matt Garrett, TGG founder and CEO, helped small business owners and employers alike to understand the economic stimulus package. This bill is complicated, but also extremely important for small businesses during these uncertain times. Here are a few key takeaways from the bill, and how you can move forward with your business plan.
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:
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?
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, 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:
In response to the economic impact of coronavirus, Congress rolled out the Main Street Loan Program to help businesses get funding to stay afloat. This program provides $600 billion in financing for all businesses. Before you consider applying for this loan program, there are a few things to consider.
As a developer or private equity firm, it is important to streamline your accounting and forecasting processes—particularly when there is complexity involved—in order to ensure the greatest amount of transparency across your company’s financials. This becomes more complicated (and important) when you have multiple LLCs, a complicated ownership structure, and poor communication with investors. Here are a few ways to ensure clarity in the face of complexity:
A skilled finance team provides strategic direction, sophisticated insights into the company’s financial situation, financial forecasting, growth planning, and tight control over budgets and cash flow.
However, interviewing, hiring, training, and paying full-time salaries for each of these employees can be expensive and time-consuming. Many small businesses just don’t have the resources to assemble a full-time finance team. Outsourcing can help!
Over the last week, the Federal Reserve has updated the Main Street Lending Program. There are 5 major changes that the Federal Reserve has made to the Main Street Lending Program that banks will start lending on within the next two weeks.
If you are eligible you should highly consider taking out one of these loans. It is inexpensive money, and will likely go as quickly as the SBA PPP Loan funds. Get started organizing your information with our MSELF Loan Organizer so you are prepared and at the front of the line to get your money.
Here are the 5 major alterations to the MSELF loan program requirements:
This is an article of accounting and finance tactics on how to survive and thrive that our CEO, Matt Garrett shared in a webinar presentation with Vistage. You can view the recorded version of the webinar and the article here as well as on the Vistage website.
When Matt Garrett, CEO and Founder of TGG Accounting, started thinking about how he would lead his team through the COVID-19 crisis, he thought of Antarctic explorer Ernest Shackleton whose story of survival was chronicled in the book “Endurance.”
“What got this team to survive in brutal conditions was process, routine and sense of purpose,” says Garrett. He has adopted a similar strategy, which is this is just one of the insights he shared for surviving and thriving in a recent webinar for Vistage. Here are the seven tactics for thriving that he outlined to help small and midsize businesses power through today’s health and economic crisis.
As businesses grow and change, it is necessary to re-evaluate your relationship with your Certified Public Accountant (CPA) from time-to-time and assess whether that CPA is the right match for your business.
If your business has grown significantly since you hired your CPA, now might be a good time to look at that relationship. Here are questions to ask yourself and your CPA to better judge whether you are well-served and tips on how to find the right CPA if you discover that it is time for a change.
Annual business planning is one of the most important things that a business owner or CEO must do. It sets the strategy, the goals and determines the tactics for the following year.
Of course, there is a lot to consider in terms of where your business has been and where you are headed. It’s important to be organized and stay focused because how you plan often sets the tone for your business. Here are 7 key steps for an efficient planning process.
Cash is king. Everybody knows it and yet businesses are lax in their cash flow reporting and forecasting. CEO and founder of TGG accounting, Matt Garrett explains why “cash is king” and what you can do to have more of it and move the cash you have more wisely.
55% of businesses are failing in the first four years. According to The Brookings Institute 11% fail every year thereafter. This is all attributed to lack of cash. Here are 6 elements of cash flow management to watch:
- DSO (how fast you get paid)
- DPO (how fast do you pay people)
- Discounts – give them to get paid faster, ask for them to reduce expense
- Human capital management (utilization)
- Inventory management