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:
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!
The Paycheck Protection Program has been created to assist small businesses during this unprecedented time. The SBA PPP program is only a part of the CARES Federal Stimulus package, which works to counteract the economic downturn related to the COVID-19 pandemic. Recently, the SBA PPP has run into several challenges while dealing with the delivery of funding.
As most business owners know, the team behind your bookkeeping is vital to the success of your business. Still, things can get a little complicated when it comes to understanding the roles and responsibilities of each person. In the interest of clarity, we at TGG are always interested in the numbers and transparency, let’s outline each of their roles and responsibilities.
With the changing technological times, almost every company is utilizing technology to run their businesses. This can put a company in a vulnerable position if they do not have the right cybersecurity protocols in place. Small businesses tend to be the first target for hackers, as they assume that smaller businesses don’t take the time to protect their company from cybersecurity threats.
Tax season is officially in full swing. For those in the small business world, there are a lot of questions surrounding the recent 2017 Tax Cuts and Jobs Act and how those changes to the tax code could positively or negatively affect this year’s filings. These are some of the biggest changes seen in three decades and the overall result is a big win for small businesses. We looked at the changes and pulled out the five most important tax changes for small business owners.
What should your ideal accounting department look like? It’s a common question among businesses. It’s important to know proper roles and responsibilities along with how to best structure it. When it comes to accounting, a multi-layer structure is critical to provide appropriate internal controls and to produce accurate and timely financials to manage your business.
Only one in 20 small businesses has accurate financial statements.
That makes up only five percent of businesses. Almost half of all small businesses experience some kind of accounting theft at their company, which costs them an average of about $114,000 per occurrence.
The Association of Certified Fraud Examiners puts out a report annually that is a giant eye-opener for how much fraud and theft is out there. The numbers are staggering–and it’s was one of the factors that led CEO Matt Garret to found TGG Accounting. Small business accounting can help mitigate these threats.
In an interview with Stay Wealthy San Diego, Garrett shares the story behind TGG and how it’s turning traditional accounting on its head.
There’s a small business tax trap that many owners fall prey to. The IRS requires you to make quarterly estimated payments of your tax liability. Most of us small business owners either underpay the tax rate or not even pay at all. The worst part is that, unfortunately, a lot of CPAs aren’t paying attention to this either.
So how do we plan for taxes appropriately? We need to make sure we’re not falling into this tax trap, where we get stuck and end up paying a huge chunk of our revenue at the end of the year to pay for taxes we didn’t expect.
Remember, the number one cause of business failure in this country is a lack of cash. To combat this small business tax trap what you’ve got to do is make sure you have enough cash on hand to pay your taxes. After all, they’re your number one creditor every single year.
This is an article about our CEO, Matt Garrett’s presentation to Vistage. You can view the original article on the Vistage Website.
As the COVID-19 pandemic continues to worsen, finance experts say the global economy is spiraling towards a recession at best. Some also warn that a depression may be right around the corner with unemployment levels we have not seen for 90 years.
“This is 100% unprecedented,” says Matt Garrett, CEO of TGG Accounting, who has spoken to more than 600 Vistage groups about finance best practices for small and midsize firms. “We’re going to lose years and years of productivity. It’s going to present a massive unemployment problem…and a massive problem for the business community at large.”
Having led businesses through the 2008 recession, Garrett offers candid advice for CEOs trying to prepare their firms for today’s tumultuous environment. “Run your business by the numbers,” he says. “Get the numbers right and then make decisions based on those numbers.”
From a tactical point of view, Garrett says, this means taking seven steps.
At TGG, we meet business owners everyday that are reluctant to outsource their accounting and financial functions because they think it will reduce visibility into the financial health of their business.
At the same time, they’re struggling with accounting and reporting issues–even when they have someone on staff to handle bookkeeping.
Large companies benefit from accounting and finance departments that have several layers of expertise at their disposal.
It’s usually too costly for small businesses to staff an entire finance department. But they can emulate this model by using an experienced, outsourced accounting service that provides the right expertise at the right times.
You might be surprised to know that this does not necessarily mean getting rid of your current staff.
Accounting for small business can mean different things at different times in your company’s growth and it’s important to have the right expertise on hand.
Here are the most common questions we hear when small businesses are considering outsourced accounting services.