The last two years have been unlike anything we have ever seen or anticipated. Individuals have struggled financially, and that hardship has been magnified for businesses all over the world.
Within a matter of weeks, life as we knew it was flipped upside down. We were all thrown for a loop in March 2020 when COVID-19 drastically changed our workdays, businesses, and all social interactions and entertainment. We saw companies and businesses lean into the chaos and create new ways to stay afloat. We know businesses have suffered, and we know resources have been and will be developed to help. To help, we saw professionals questioning how they could still utilize their skills to help others get to the other side of the pandemic, and Certified Public Accountants (CPAs) headed to the drawing board too.
CPAs work tirelessly to think outside the box for their clients. Even before the pandemic, CPAs have always wanted to redefine what a “CPA for businesses” meant to their clients and the businesses they represented. CPAs are trained to see the need and assist in planning for the future – for times of flourishing and times of disparity. CPAs exist in a consultative manner to be there when their clients navigate through times of uncertainty and as those clients make big decisions impacting their business.
How a Certified Public Accountant for Businesses can help your business during this time:
1. Cash flow analysis and projections
Clients in the travel, restaurant, bar, hospitality, and entertainment industries were and continue to be some of the hardest hit during this unprecedented time. The financial and economic impact is ongoing, and many other business owners may find themselves in trouble months or even years down the road. CPAs for businesses can help redefine how your business functions by coming alongside you to analyze your current financial situation. Once the CPA for your business has garnered data, they can set up projection models for down the line to help anticipate the financial health of your business. They can also make recommendations to you to determine if it makes sense to seek financing or a line of credit now, soon, or ever.
2. Outsourced accounting functions
Businesses in the middle of a growth cycle may find themselves unable to hire a full-time employee during the pandemic or simply might need extra help with their financial decision-making paradigm. Many business owners do not know that CPAs for business can offer outsourced accounting to help your company. Some of the work that can be outsourced includes keeping your books accurate and up to date, creating reports, and performing other financial functions. This outsourcing allows business leaders like you to focus on other business areas – whether that is an area being impacted by the pandemic or simply focusing on the skills that initially motivated you to go into business.
3. Tax strategy
Two things are certain in life – death and taxes. Taxes do not have to be a grim fact of life because a CPA for businesses can help you. It is true, when most people think of CPAs for business, their first thought will be tax assistance! CPAs look to minimize tax liability for businesses by identifying tax savings opportunities and credits. A tax strategy includes a holistic approach for corporate and partnership tax, state and local tax, gift, estate and trust, sales and use tax, and payroll tax, as well as individual tax implications. Click here to see the many ways DHJJ can help your business by providing tax insights!
4. Paycheck Protection Program forgiveness
Many companies were able to seek financial help with the Paycheck Protection Program (PPP). The most attractive part of the PPP is that businesses could seek 100% loan forgiveness if they meet specific criteria. CPAs help guide clients through the forgiveness process and continuously keep up with current announcements from the Small Business Administration. This process is ongoing and ever-changing, making a CPA for businesses even more ideal.
5. Ready to sell
If you were already considering selling your business, and the last two years have been particularly grueling, then a CPA is exactly what you need. “ If you’re selling your business, a CPA can give you an idea of the fair market value of your business, and prepare your financial reports and statements.”[1] A CPA for businesses can take the load off of your back by helping you prepare your books and financial status for your sale with a business health assessment.
How DHJJ Can Help
We know the last several months have been a bumpy ride for you, your family, and your business. We know what a toll this can take on you as a business owner. We know you work hard and will stop at nothing to see your business succeed. We respect that about you, and we are here to offer our support. We know CPAs for businesses like yours are redefining how businesses work with their CPAs during seasons of unprecedented change. By collaborating with your CPA and coming up with a plan and process to help you and your company be proactive in making decisions based on solid data and information, you have a unique opportunity to get a step ahead of the competition. In fact, you have a personal guide to help as you navigate through the COVID-19 pandemic or any other unexpected challenge your business faces. DHJJ’s team of CPAs has extensive experience in customizing plans for companies like yours and their management teams. Contact us today with questions or call 630-420-1360 to collaborate with a DHJJ team member.
