The COVID-19 pandemic threw the world economy into chaos. Small businesses were some of the hardest-hit in the United States, and the government responded with a stimulus package to help keep small businesses afloat. In today’s blog from LongSchaefer, we examine five small business accounting issues to keep an eye on during the summer of 2020.
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1. Cash Flow
Cash flow is foremost on the minds of small business owners. Robust and accurate data is the first step to figuring out the best way to move forward. You need accurate numbers in terms of revenue, expenses, and staffing. Once you reach a certain threshold, you must add or subtract your costs as needed. Small business accounting can help you measure and interpret your data to give you an idea of when to take action.
2. Tracking Business Losses From COVID-19
Small business accounting software gives you tools to track all of your financial data. The more information you have, the better prepared you are to make decisions about the coming months. Track your business losses from COVID-19 correctly. Business losses offer some opportunities for relief. No one wants to default on business loans. However, if you have strong data you can give to your bank, the financial institution might be willing to work with you with regards to delaying payments on loans you received before the pandemic happened.
If you received SBA loans as part of the CARES Act, you might be able to delay making payments on the loan for up to six months. Our small business accounting experts can help you navigate your debts and help you discuss the situation with your bank.
3. Employee Numbers
Staffing and labor costs are the number one line-item expense for many small businesses. You need to know how many employees you can afford to keep, how many hours you can afford to pay them, and what rates you can pay your workers. Talk to your employees. Get a feel for how things are going. Was their stimulus payment enough to cover any gaps they have in unemployment or reduced hours?
4. SBA Emergency Funding Forgiveness: Yes or No?
Staffing numbers were a major factor in how much money you received for the SBA’s Paycheck Protection Program (PPP) loan. How your staffing levels affect the loan forgiveness process can help you save money on staffing expenses in the future. Small business accounting experts help you meet your loan obligations if you want to have the best chance for loan forgiveness. The SBA’s regulations may change with regards to the emergency funding, and LongSchaefer is staying on top of the evolving situation.
5. Tax Deadline of July 15
The tax deadline for federal and Ohio filers was extended to July 15. Amid the coronavirus pandemic, filing taxes is probably the last thing on your mind. Small business accounting pros at LongSchaefer have an easy way for you to submit your documents to us ahead of the filing deadline. Our TaxCaddy portal makes it easy to submit your documents and information. Let us know if you need further assistance!
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LongSchaefer: Here for You
Our mission is to help you achieve your definition of success. LongSchaefer aims to be a calming force in the storm of financial calamity after COVID-19. We’re staying on top of new information as it comes out, and we offer expert, qualified advice for your small business accounting needs. Contact LongSchaefer or call (513) 245-0300 to see how we can help your business.