Most of us have never seen anything like the social distancing we’re currently engaged in because of Covid-19. Uneasy about all the uncertainty, most of us like to feel fully prepared and see what’s coming.
What will it mean for our businesses? How can we minimize or prepare for the projected financial repercussions?
At least you can rest assured that Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. is committed to providing top-shelf bookkeeping & accounting services without compromising personal safety.
Our business continues to operate on a no-contact basis and our clients’ finances are still receiving the high level of attention they deserve.
Well-prepared for situations like this, our CFOs, accountants, and bookkeepers quickly transitioned to working 100% from home.
Since we are entirely paperless, clients’ financial data is securely backed-up and accessible at all times. There’s no need to send packets or papers back-and-forth to prepare financials or do the books; it’s all online in the cloud.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. came up with some things business owners can do right now to focus on extra planning, budgeting, and preparations to hit the ground running when things get back to normal:
- Don’t let the self-quarantine isolate you from your business’s principle decision-makers, advisors, managers, bookkeepers, accountants, etc. Adapt to the new social climate by holding meetings via phone, Zoom, Google Hangouts, and other online video conference hosting platforms.
- During the meetings, determine which opportunities you’ll focus on for improved business performance and customer service.
- Write down your desires, expectations, and strategic goals for the next quarter and the remaining year.
- Review and analyze financial reports. Gather hard data on things like revenues, profits, capital, cash flow, and expenses to understand how your business is changing. Use the data to identify trends in business growth, revenue & profits performance, sales trends, and expenditure trends.
- Conduct at least monthly, quarterly, and annual reviews of the income statement, balance sheet, and cash flow statements at a minimum. When changes aren’t in-line with goals, explore further and then create a plan to get them on track.
- Use the data to identify gaps, expose a need to reevaluate partnerships or supplier relationships, purchase new equipment, or take other steps while you have time to get these things done.
- Revisit budgets for at least the next quarter, review them often, and expect to accommodate the dynamic situation by making adjustments.
- Ask questions!
- Are you on track to hit your target sales number for the year? If not, why not?
- What activities have brought in more sales and revenue to your business?
- What categories are cutting into your profits?
- Is your accounting system effectively showing current financial reports?
- What is working and what is not?
- Has your marketing plan brought in customers as anticipated?
- How can your business boost sales?
- Ask your accountant what still needs to be done to file your 2019 taxes, then gather & send off the 1099s, vehicle mileage information, etc. that they need to complete your filing.
- Complete outstanding employee performance evaluations.
- Do a physical inventory count.
- Conduct a product & services price review. Implement price changes if appropriate.
- Do you have a Mission Statement and a Business Plan? If not, then now is the perfect time to write them.
- Back-up your accounting software (if you’re already a Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. client, then we regularly do this for you).
- Organize backup documentation. Keep all records for one year in one clearly labeled folder (or box) so it’s easy to find. Then create sub-folders inside to keep things like financial statements, paid bills, canceled checks, bank statements, tax returns, and other documents organized. If you’d like help setting up a new system, reviewing your current one, or maintaining your files, then let your One Source Services bookkeeper know; they have simple & secure digital document management solutions. Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. clients already have everything securely stored and backed-up in the cloud.
- Use this time to establish a system for saving expense receipts if you don’t have one in place. The IRS requires receipt backup for expenses exceeding $75.00, but we recommend that you save receipts for all expenses regardless of the value because if you’re not tracking smaller expenses, then you can potentially miss tax write-offs and other expense-reducing opportunities. Your One Source Services, Inc. bookkeeper has excellent receipt-capturing apps like ReceiptBank and QuickBooks Receipts to keep it simple.
- Review your bank and credit card statements. Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. bookkeepers review their clients’ bank and credit card statements at least once a month: AT LEAST. You should do the same! Reviewing them thoroughly can help prevent fraudulent card and check usage.
- Take care of yourself and your loved ones! It’s important to remind ourselves to rest and digest, especially these days.
- Peruse our blog for more tips and articles relating to bookkeeping, accounting, & maintaining good business health.
The CFOs, accountants and bookkeepers at Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. are available and eager to help however we can.
Please reach out if you have concerns or see significant changes to your business. Even if it’s to facilitate reporting to support an SBA loan or other assistance application if needed.
We’ll get through this together.