15 May Pandemic Services From Reconciled Solutions
When the Pandemic hit back in March and businesses were shut down, our immediate reaction at Reconciled Solutions was to reach out to clients to see how we could be of service to the community of small business owners, which we are so very proud to be a part of. We did not know exactly HOW we could be of service but we knew that visibility and clarity to financials would be critical to sustaining economic crisis. It immediately struck me to reach back to our Vision at Reconciled Solutions because helping our clients feel at peace with their financials is what we do, and this is not a very peaceful time in history. During this anxiety-ridden time, the words that I wrote as an entrepreneur at Reconciled Solutions are jumping off the page at me, because we are doing our very best to show up for you, our trusted clients and to be of service to you. Our focus has been intense in the past few weeks, to help our clients sustain their businesses during this difficult time.
“Our vision is to help high-achieving small businesses advance toward financial order while increasing profitability and sustainability.”
Here is what we have been up to at Reconciled Solutions:
PPP Loan Forgiveness Calculations:
With the second round of PPP funding, a lot more businesses were approved and have received their PPP loans. We have been spending our days calculating loan forgiveness and how each company is impacted differently. From re-hiring furloughed employees in efforts to maintain FTE headcount, to calculating different ways to maximize forgiveness, the work has been intense and meaningful to our small business community. Did you know that on 5/1/20, the SBA issued their “6th Interim Final Forgiveness Guidelines”? (That’s right: 6th!) The guidelines for loan forgiveness are changing regularly and we are following this information like a hawk.
We have added services to support business owners in making sure they qualify for maximum loan forgiveness. We do an initial consult with the client to set the stage for estimated calculations, and then we follow the client through the 8 weeks of loan forgiveness so that once per week, we are re-calculating and re-calibrating expenses that will qualify toward loan forgiveness. Every week, our client has an updated amount of qualifying loan forgiveness. This ensures the following for our clients:
- They will get every penny of loan forgiveness they are entitled to.
- They will have complete and accurate documentation at their fingertips to easily submit for forgiveness to their lender.
- We are continuing to follow changes in law, so our clients don’t have to. On Friday, May 1st, the Treasury released their “6th Interim Final Forgiveness Guidelines”…clearly they continue to change things and rest assured, our clients will know the latest adaptations.
- Is this REALLY what our clients should be spending their time on in economic crisis??? They need to be focused on keeping revenue coming in the door and how they can adjust their offerings to support their client base.
- Our clients are able to sleep at night because they know they have done everything they could.
Cash Gap Planning and Cash-Burn Calculations:
We understand that your business is likely substantially compromised by the COVID-19 pandemic and shelter-in-place orders. We have developed a format so that we can identify and project out with accuracy to the week when you can anticipate running out of money, given current sales revenue dates. This allows business owners to take deliberate action in efforts to avert further crisis. There are lots of ways to prepare for a cash shortage:
- Getting a loan or borrowing from another source
- Cutting business costs like staffing or other expenses
- Following up on past due receivables and improving collections
- Pivoting to new sales opportunities created out of pandemic
We use a Cash-Burn Rate calculator which is just so nifty, it makes my analytical heart soar when I see the pretty pie chart that it spits out:
SURVIVE/MAINTAIN/THRIVE Execution Concepts:
Understanding your financials and your business processes have never been more important than now. Instead of beating yourself up for getting lightheaded and sick to your stomach when you have to dive into your business numbers, get busy building a sound financial future right now, today. There is no better time than right now to implement Profit First in your business. If you are not familiar with Profit First, this is a simple system developed by Mike Michalowicz to help business owners take control of their business finances, pay themselves first AND build out the development of their future business opportunities and sustainability. We would love to help you in this process.
Thankfully, the government has put small business in the United States in a position to SURVIVE through the CARES Act which is inclusive of PPP Loans and EIDL Loans and Grants. We can MAINTAIN our businesses through the support of cash management products available like our above listed Cash Gap Planning product. As we are on this road together, let’s make plans together on how to THRIVE during economic crisis. I encourage you to reach out to us with stories of how your small business is taking deliberate action to move out of crisis mode and toward a sustainable future. Profit First tactics are a great way to drive that change. We would love to hear from you! Please take a look at our social media links as we have been trying to step up our game with informative videos and tidbits to support you on this journey. We certainly don’t have all the answers. If there is something you would like Reconciled Solutions to consider, please reach out and make suggestions! We hope to see you on the other side of the bubble, surging forward with optimistic entrepreneurial spirit and adventure!
Stay Safe, Stay Creative!
“Success does not happen in isolation. It is very often a participative and collective process.”-Author Unknown