​To say the least, the Covid-19 crisis has had a significant impact on our nation’s economy. As a result, businesses around our country and around the world have had to make adjustments to the way they earn revenue and maintain a steady cash flow. Fortunately, there are steps you can take – regardless of the type of business you own – that can help you strengthen and maintain your cash flow as we navigate towards the end of 2020 and into 2021.

​PROJECTIONS ARE YOUR FRIEND
During this time of uncertainty, you should frequently be running projections and cash flows in order to stay on top of any changes that might occur between now and year-end. By running both projections and cash flows on a monthly basis (at a minimum!), you can have a better understanding of not only what you need your revenue to be, but how you can make adjustments as situations continue to change due to the Covid-19 crisis. During this time, I have been monitoring my cash flow on a weekly basis and I project it out 13 weeks at a time. Doing this actually helps lower my stress level because I know exactly what is going on and there is no guessing. For me, the more knowledge I have (about any situation), the better equipped I feel to tackle anything head on!

STAY ON TOP OF RECEIVABLES
When the economy is doing well, we all have a tendency to be more relaxed about our receivables. As we all navigate the effects of Covid-19, all companies have a chance of being affected. Additionally, your own customers may be in crisis mode when it comes to their financials and may want to delay their payments to your company. To help avoid this, stay accurate and timely with your invoicing, keep track of customer specific payment performance and keep the lines of communication open with your customers. They will appreciate it and so will you.

THINK CREATIVELY ABOUT REVENUE STREAMS
As we navigate our new normal you may find that your current revenue streams are adversely affected. If this is the case, try thinking outside of the box on ways to keep your revenue rolling in. For example, if you sold a product overseas, try to think about how you may be able to market that product domestically. Whatever your situation may be, thinking creatively about how to remedy it may go further than you think.

DON’T HESITATE TO ASK FOR HELP
As we all navigate through the Covid-19 crisis, there are many challenges and regulations to consider. Even if you have not sought outside help before, now might be a good time to consider having an outside team of experts. There is much to sort through when it comes to the support available to businesses. Accounting, tax, legal and other professionals have the tools and knowledge to help you safely navigate to the other side of this crisis without hopefully going into a financial rabbit hole.

As a business owner, you know your company’s finances are like a pulse – you may not think about them constantly, but it is a good practice to check in on them regularly. Preparing for the end of the year lends itself as a great opportunity to do just that and you should really start thinking about this process come September.

​You can utilize your year-end financial preparation and planning process to ensure:

• Accurate accounting and financial data
• Preparing for year-end financial review, audits, and tax preparation
• A meaningful budget for “next year”
• We believe year-to-date assessments, last quarter predictions, tax planning, and the following year’s budget should be your year-end prep’s top priorities.

Start with your year-to-date (YTD) assessment; this will give you an opportunity to reflect on your business’s financial evolution over the last three quarters and predict what is likely to come in the final quarter. This is an excellent time to ensure accuracy in your bookkeeping and consistency in your financial reporting. YTD information is also helpful in analyzing business trends and performance, final quarter predictions, and setting the following year’s budget. YTD assessments can be done at any given point throughout the year, but for purposes of looking toward year end, August 31st or September 30th is a good line in the sand to draw and review.

With your YTD assessment complete, and your numbers accurate, you now have a solid baseline to look at how your last quarter is going to perform. These projections and this review will alert you to any upcoming financial issues and support your year-end tax planning process. It can feel daunting to predict your company’s financial future, but looking at the last three quarters, knowing of any changes to come in contracts, and being aware of upcoming expenses can help you make an accurate projection of your company’s profit or loss. Additionally, you can utilize this information to make any necessary changes to keep your company in a healthy financial state.

As you predict and plan for the future, it is also time to prepare for the upcoming tax season. With confidence in your YTD numbers and last quarter predictions, now is the time to ensure your tax bill is not unexpectedly burdensome. A Certified Public Accountant (CPA) can help with this. Engaging a CPA who is highly experienced in the tax law is a great investment for any business; they can ensure you don’t overpay your taxes by finding ways to reduce your taxable income while also ensuring that you stay compliant with the current tax laws and regulations. A CPA well versed in your industry knows where to find deductions, defer income, and accelerate expenses. Tax laws are continuously changing, and a CPA can help your business stay apprised of those changes.

With your year-end preparations almost done, creating the next year’s budget should be your next priority. The tools needed to prepare your budget for the following year should include: • The company’s current year budget • YTD financial information • A comparison of your actual YTD financial results against your original budget • An understanding of how your revenue and expenses may change in the following year • Any goals and objectives for your business for the upcoming year

We recommend taking a deep dive into all your company’s expenses each year which means you are essentially reviewing and justifying all your company’s expenses. More often than not, you will find new ways to optimize your costs and increase your profit and also ensure that you are incurring costs that are essential to the health and growth of your company.

We know owning your own business is a labor of love and managing your company’s year-end financial preparation can feel daunting, but you don’t have to manage it alone. Visit our website to learn more about how we can help support you and your business.

​WHAT IS AN SBIR GRANT?
The Small Business Innovation Research (SBIR) program, sometimes also referred to as America’s Seed Fund, was put into place to provide funding for technology commercialization in the United States. SBIR grants assist companies in the United States with funding for federal research and development for products that have a good chance of being commercialized. SBIR grants are funded by the government and operate under a unique structure. The purpose behind SBIR funding is to help companies fund their research and development costs.

WHERE DOES SBIR MONEY COME FROM?
There are 11 federal agencies who have extramural budgets in excess of $100 million. On an annual basis, $2.5 billion of that is awarded to SBIR grants. Out of the 11 federal agencies, the Department of Defense gives the most in SBIR grant money – approximately $1 billion per year.

WHAT DOES SBIR MONEY COVER?
SBIR grants cover a range of expenses relating to the operation of your business: Not only do these grants help cover direct research costs, they can also be used for other expenses that relate to running your business. These can include items like rent, utilities, materials, salaries, and more. That being said, costs having to do with entertaining clients, sales, publicity, and other similar expenses cannot be paid using grant money.

If you receive a SBIR grant for a specified amount, that amount will be given to you most likely in predetermined increments and not all at once. Sometimes deliverables and specific reporting must be presented in order to receive the next round of funding. As a result, initial working capital or support from investors can be helpful to have.

HOW DO I KNOW IF I QUALIFY FOR A SBIR GRANT?
To be considered eligible for an SBIR grant or contract, a business must be a “small business” according to the Small Business Administration (SBA) and meet the following criteria:

1. The business must be classified as a Small Business Concern (SBC). These requirements can be found on the Small Business Administration website.
2. The business must be independently owned and operated
3. The business must be based out of the United States
4. 51 percent of the business must be owned or controlled by citizens or permanent illegal aliens of the United States

WHAT ARE THE PHASES OF AN SBIR GRANT AND HOW DO THEY WORK?
SBIR Grants are awarded in three phases:

Phase I is considered the start-up phase in which up to $150,000 can be awarded over a period of six months to help a company get their research and development costs covered to determine whether or not a technology is worth pursuing.

In Phase II, SBIR grants can be awarded in amounts up to $1 million for up to two years. Whether or not a company makes it to Phase II will depend on their results from Phase I. During Phase II, research and development work is continued and the developer determines whether or not the product should be commercialized.

Phase III consists of the technology/product moving from a laboratory and into the market to be sold. During phase III, no additional funds are awarded.

ONCE I HAVE AN SBIR GRANT, WHAT KIND OF ACCOUNTING PRACTICES DO I NEED TO PUT INTO PLACE?
If your small business has been awarded a SBIR grant, or if you are looking to apply for an SBIR grant in the future, it is important to have a grasp on what you will need to have in place to correctly keep track of not only your research and development costs, but also how you use the money your business has received through the SBIR grant. These areas include:

• An accounting system for your business that has the ability to accurately keep track of actual expenses as compared to the SBIR grant budget submitted while also having the capability to meet FAR Part 31 requirements.
• A set of policies and procedures to document the key operational and accounting areas of your business. These policies and procedures will need to state your understanding of allowable versus unallowable costs in addition to other compliance areas.

Meticulous record-keeping habits are key and most organizations that provide grants require proof that the grants are being used properly. Because of this requirement, you will want to be strict and accurate about your record keeping. For example, to support the record of the expenses your business incurs, you’ll want to keep accurate employee time records, copies of invoices, and receipts for expenses. In order to be accurate with your record keeping, it’s critical to have a solid accounting system in place.

​As the Covid-19 pandemic continues across the globe, many of us are feeling the additional stress that the virus has caused. Not only are most of us worried about friends and family, but the virus has also left us with uncertainty. 

You may be anxious because no one can be exactly sure what the new normal will be, or perhaps you have experienced a routine or life change. Work norms have certainly had to be adjusted and depending on what type of business you are in, you may have had to change the way you conduct business. Whatever the case may be, handling the additional stress we are all experiencing can feel like a challenge. Fortunately, there are steps you can take on a daily basis to help lower your stress levels. Here are some of my own “go to” stress relievers:

1. Take time to breathe: This may seem very simplistic but giving yourself a couple of minutes to take a break and just breathe can immediately relieve stress. Not just a couple of breaths, but really breathe deep and focus on the air flowing in and out of your lungs. This will do wonders for your mental health and stress levels. It also forces you to slow down and ground yourself.
2. Stay connected: With social distancing in effect, many of us have been forced to abandon recreational routines that we may have had. For example, most of us are not able to go out on Friday nights or take a trip to a local restaurant or movie theatre. Form a new, fun routine that you enjoy. This may be getting on a face time call with your friends and eating dinner together or forming a book club. It could be any activity but set aside time to allow yourself to still socialize and have “fun time” from afar.
3. Turn off media (even social media) for certain parts of the day: Currently, Covid-19 is being widely discussed on all forms of media. Unfortunately, hearing the facts – which are not always positive – can take a toll on your mental health. Set aside time during the day where you decide to turn off all forms of media.
4. Focus on what you can control and on areas where you can bring certainty to your life: Perhaps one of the biggest stressors that many of us feel from Covid-19 is the feeling that things are out of control and that we no longer have any certainty in our lives. When you start to feel this way, take a few minutes to think about what you can do to feel more certain and in control. How you set your mind at the beginning of each day will largely determine how your day goes. You may not have control over all situations, but you have control and certainty over how you react, respond, tackle obstacles, and solve problems.
5. Help others: Helping others always makes me feel better and it can be as simple as a phone call or text encouraging someone who is really struggling or not feeling well. Think about how you can help others in your community, support your local businesses, and check in on your neighbors. Taking the focus off yourself for even just a little while to be there for someone else does wonders for the heart and soul.
6. Develop or keep your exercise routine: Physical activity is a wonderful and effective way to lower your stress levels. Not only can exercising be a distraction from stress, it also helps to regulate the nervous system. Because of this, having a routine exercise regime can be immensely helpful for not only your physical health, but also your mental health. I have never been a morning workout person, but lately I am pushing myself to workout first thing before I start my day. This enables me to get those positive endorphins that keep me feeling great all day long. Not in love with exercise? Even taking a walk outside to clear your head can be enough to activate endorphins released by exercise.
7. Form a new routine: Without a doubt, Covid-19 has caused major societal disruption. More than likely, you have had to abandon an old routine that you once had. Most of us take comfort from having a routine, and for that reason it can be important to form a new routine. For example, if you are now working from home instead of an office, still get up, get dressed, and have set work hours. While we have all had to make adjustments, keeping yourself on a routine, even though different, can help reduce stress.
8. Spend time outside: Even with social distancing, it is still possible – and important for your health – to spend time outdoors. Even as simple as taking a walk around your neighborhood or reading a book outside, you can often boost your mood by getting fresh air.
9. Start something new: If you have free time, start something new that you enjoy. Maybe you love doing puzzles or drawing – or there a couple of home improvement projects you want to start. Whatever the case may be, starting on a new project can not only be a great way to distract yourself from what is stressing you out, but can boost your mood and productivity levels.
10. Putting pen to paper: I find that journaling once a day (in the morning for me), helps me write down my thoughts and set a positive mood for the day. If I wake up anxious, I find that this also reduces my anxiety. Most of us have a tendency to keep our anxious thoughts to ourselves, and as a result, tend to internalize our anxiety. By writing down what is bothering you, you physically get it out of your head and onto paper and in essence you let it go. For me, it is a much different feeling than typing on a computer and a much more enjoyable and effective process for whatever I am writing. Putting pen to paper is not just for reducing stress or anxiety, you can also use it to generate ideas, list the things you are most grateful for or even hand write a letter to someone you love. Get creative with it and enjoy the process!

While the Covid-19 crisis is incredibly stressful and most of us are feeling the effects of the uncertainty of the future, there are ways that you can help yourself adjust to the new normal that we are all currently facing. At the end of each day, do your best to focus on the positives in your life and what you are most grateful for – even the smallest thing matters!

How you can take this down time to catch up on your business’s “homework.”

Over the last several weeks, nearly everyone has had to make adjustments on how they live their lives. With Covid-19 sweeping across the globe, it has been a struggle to keep up with the changing demands of our recent environment. Businesses across the country have had to make changes to the way they run their day-to-day operations and people’s patterns have been forced to change – instead of going out on Friday nights, they are staying in. Work trips and vacations alike have had to be put on hold. Watching the news for a short five minutes can leave one anxiety ridden. Yet, in the midst of all of the change and uncertainty, there are positives that can come out of being forced to slow down and reflect. In a time when it can be tempting to sit around and fret, finding positive and productive activities can help provide the certainty we are all craving during these turbulent times.
As a business owner, I often find myself with a lot of loose ends and it can be hard to find the time to tidy them up when I am trying to manage my day-to-day business operations. If nothing else, this forced period of down time can be helpful for catching up on your business’s, “homework.” Below are 3 ways you can use this down time to catch up on and strengthen the fundamentals of your business.

• Strengthen your relationships: Now is the time to communicate frequently and effectively with your customers, colleagues, and community. You do not have to be on social media to do this, though it certainly helps when you are trying to connect with your community.
  • Let your customers know that you are there for them. By simply checking in, you can strengthen your customer relations. If you have been putting off e-mails to your customers, now is an excellent time to catch up and reach out. Want to make it more personal? Pick up the phone or ask for a video chat over coffee. I never used to activate the video feature on my remote meetings – now I do so that I can connect better with the person I am chatting with and even though I do not always look my absolute best, I find that does not really matter. What matters is the human connection especially during these self-isolating times.
  • During this time, everyone is experiencing some levels of stress and/or anxiety. Let your colleagues and co-workers know that you are there for them as well. Additionally, as most of us are having to work remotely, keeping the lines of communication open with everyone is helpful for all of us. Not only will staying in touch with your colleagues and co-workers help keep the lines of communication open for your business, it will also strengthen personal relationships and offer support for everyone as we navigate this uncertain period of time.
  • It is a great time to also let your community know that your business is there for them. What you can do for your community will obviously depend on your business type. That being said, we can all help each other out and spread positivity. Now is also a good time to keep the small businesses in your community supported. While we cannot go to a restaurant and sit down and eat, many restaurants offer takeout and delivery. Look around at your community and see how you can help.
• Review your goals and your financials: With the extra downtime we are all currently experiencing, taking the time to sit down and look at your goals and financials is a great way to make sure that both your business and personal goals are on track.
  • Are the goals you set at the beginning of the year still attainable with today’s landscape? How do you need to adjust them? What is your revised plan? When asking yourself these questions, take it one step at a time. It can sometimes seem overwhelming to look at your finances. Remember that taking one step forward is better than not moving at all.
  • Look at your financials year-to-date and re-visit the budget you hopefully set for yourself this year. How is your business being impacted and what can you do to save money or come up with new innovative ways to keep your bottom line from falling apart?
• Use the extra time to organize: Regardless of whether you are able to work remotely during this time or not, having an organized office space (and home) can do wonders for boosting productivity and positivity.
  • If you are able to work from home during this time period, you will want to make sure that your home office space is organized. There is nothing more discouraging or discombobulating than trying to work from a messy office. While some of us may have been working from home before the Covid-19 situation, if you are new to working from home, you will want to make sure that you set up an area in your home that is a positive, friendly environment to work from. Try to set up your home office not only in an area that inspires you, but also someplace away from distractions.
  • If the nature of your job does not allow you to work from home (or even if it does), working on your home project list can also leave you feeling positive and productive. Although not business related, tackling the home projects on your list can do wonders for your mental health.
  • With the extra time, you may also want to consider starting a workout routine such as yoga, or stress-reducing habits like meditation. Additionally, you could also consider learning about that subject you’ve been interested in for years but have never had the time to pursue (i.e. astrology or philosophy).

For me, taking control over what I can is very helpful when most everything is out of my control. I also cannot emphasize enough to be kind and gentle with yourself, always, but especially now. We tend to be our biggest critic and now is not the time to do that. Push yourself to keep taking steps forward because that will help your mindset stay positive which in turn helps your immune system and your overall well-being but be understanding with yourself if you have a day that you just cannot show up and need to rest.
Despite the fact that this a stressful time in which we are all forced to stay at home, there are plenty of positives that can be taken away from this forced downtime.

​With the first quarter of the year closing, now is an ideal time to reflect on where you stand heading into the second quarter of 2020. Despite the fact that our country is dealing with the Covid-19 crisis, there are still ways that you can sit down and look at where you want your business to go. Also, now is an excellent time to understand the changes you may need to make within your business to handle our current changing environment. Lastly, “now,” is also the perfect time to try and bring some structure and certainty into our lives with all that is uncertain. One of the best ways to accomplish all this is by analyzing your recent performance against your goals and objectives.

Hopefully you started the new year (and new decade) with some written goals and objectives, and maybe even a map on how to get closer to your dreams. While the second quarter of 2020 currently poses a new set of challenges for business owners, you can still plan to not only achieve your dreams and goals, but also discover ways to help your community during the Covid-19 pandemic.
There is nothing that can’t be achieved with the right mindset and discipline. For me, my personal dream is to be a leader in preventing the unnecessary cruelty and slaughter of retired and injured racehorses coming off the racetrack. In order to achieve this dream, I must have goals and objectives and be consistently measuring my results against them and revising the plan as needed.
Let’s assume for a moment that you have gone through the process of laying out your goals and objectives and have outlined a road map. In order to make progress and ultimately reach your goals, you need to constantly review and analyze your growth.

• Break down your annual goals and objectives into quarters. Next, break down each quarter into monthly goals. By doing so you can create a manageable system of steps that will help propel you toward your larger goals—one week at a time.
• Every Sunday I map out a plan for my week based on everything that is going on in my life—from mundane chores, such as paying bills and making some much needed phone calls, to deadlines for my clients and actions I need to take to move me closer to reaching my goals and dreams. This may sound tedious, boring, or rigid, but it’s the only way to transition your goals and dreams into accessible realities. Leave the spontaneous and unknown for your recreational time - not for trying to make your dreams come true. During this weekly planning process, I also reflect on the prior week’s outcome and ask myself the following questions:
  • What did I do well? What did I accomplish? What were my wins?
  • Where did I fall short? Why? Was it just “life” or was there something that I could have done better? Perhaps I didn’t manage my time well or got caught up in something that wasn’t really necessary or meaningful. What can I improve on?

​I always like to do a formal review of each quarter and take stock of where I am and adjust as necessary—because as we all now know all too well, life happens, and things don’t always go as planned. Early March is the perfect time to really look at where you are and see what you can drive over the finish line before the quarter’s end. Ending the first quarter of the year with success can really help drive momentum for the year ahead. If you haven’t stayed on top of your results throughout the quarter, now is still the perfect time to assess and review your results and prepare for the second quarter!
As important as it is to stay on top of your business, it is even more critical to take care of yourself - especially as we navigate the second quarter of 2020 and make adjustments for the Covid-19 situation. Now more than ever, it’s important to remain flexible and take care of yourself when you need it most. Making sure that you are taking time for your mental, emotional, physical, and spiritual well-being and also being there for the ones you love. Wherever you are in the process of adjusting, take time that you need. For me currently, I am more successful in my day when I stay in a routine as much as possible, meet my client deadlines, give my body the rest it asks for, and maintain an exercise program. It is also extremely helpful for me to journal about what I’m feeling, my fears and concerns and my hopes and dreams. I’ve learned from others the value of putting pen to paper – and the power of writing down things for which you are thankful!
I did not meet all my Q1 quarterly goals because life threw some other curve balls earlier in the year, but I am prepared to adjust in the months ahead. By having a plan and a positive outlook, these unpredictable events became manageable. Life will always happen and it’s important to allow yourself the time you need to sort through the impacts of any unexpected events. Presently, we’re all trying to make adjustments to help our community, our country, and the world get through the pandemic. Without a doubt, times are more stressful than usual this year. Give yourself time to reflect on any emotions that may be involved with handling stress, and the physical impacts of those emotions. When you’re ready, proceed boldly toward your dreams and the goals you have set to reach those dreams. All we have is today and it’s the best day to start living your best life.
May you stay safe, healthy and find some peace in the turbulent waters we are all navigating.

​Most business owners would agree that it takes passion, hard work, and money to start and grow a business. In a company’s infancy, perfecting goods or services, branding, marketing, and development often take top priorities. Even though monetary stress is the most reported concern of new business owners, the accounting system is frequently overlooked. Over the long-term, initiating a well-suited accounting system early on can save a new business time and money.

Some characteristics make accounting systems universally effective; it should meet your business’s current needs, but be able to evolve along with your business’s growth. It should allow for customization through integration from other systems or online apps for timekeeping, project management, and customer billing. A one-size-fits-all approach to accounting systems rarely serves a business well.
When businesses don’t prioritize their accounting systems, we are frequently called in to help them decipher where they are making money and where they are losing it. The cost of this remediation is far higher than the cost of implementing a personalized and effective system earlier on. For company’s handling government contracts, having these systems in place is even more important. There are numerous rules and regulations that must be followed in order to keep and win contracts. If your company can’t meet the government’s accounting requirements, your company can’t be successful.
If you believe your business would benefit from a system assessment, Golden Gait Accounting and Consulting can offer personalized remediation to meet your business’s needs. We can guide you through the implementation of the new system, help upload transactions that took place before to the new system’s launch, and ensure that you are utilizing the system properly. Even if you are paying for an expensive and robust accounting system, you may not be using it to his fullest potential. We can review your accounting protocol to see where it could be more streamlined to reduce errors, save time, and, in turn, money.
If you are starting a business and have decided to prioritize your accounting system, we are here to help you decide what system will be the best long-term investment. We want to see our clients succeed as stress-free as possible, and we believe this means not only having the best accounting system for your business in place but being adequately trained to utilize it to its fullest.