Scattershotting around the world of SBA loans and taxes here before the huge deadlines looming on July 15th.
(As a reminder: 2019 personal tax returns and payments, first AND second quarter 2020 estimated tax payments are ALL due on Wednesday, July 15th.)
We’re working with all of our Skagit County area business owner clients to dot every i and cross every t to make sure we are utilizing every opportunity for relief, deduction, and credit possible for their businesses, and for their personal taxes.
But on that front, some interesting PPP things to note:
* The SBA is expected to release business and nonprofit NAMES, addresses, North American Industry Classification System (NAICS) codes, ZIP codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges of every business that received a PPP loan over $150K. Be prepared for this, as it is expected to come this week.
* There is a bill proposed that would allow smaller businesses to apply for a SECOND PPP loan (but only if you ran out of funds with the first, plus some other conditions). This is not expected to make it to signature, but anything is possible.
* The SBA also clarified some conditions in which a business can apply EARLY for PPP forgiveness.
If you need help wading through any of this, that’s what we’re here for. (360) 424-1040
And speaking further about what we’re here for, being able to reasonably forecast upcoming problems has become an essential skill for Skagit County area business owners in 2020 — but too many are flying blind, or doing “bank balance accounting”.
Can we help you fix this?
Using KPI’s For Your Skagit County area Business
“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.” – Franklin D Roosevelt
If you measure your key metrics you can manage the performance of your Skagit County area business, AND you can see problems well in advance of when they might show up in revenue or profit figures.
Each and every business has key performance metrics (KPI’s), some of which are common to other businesses, some are industry-specific, and some companies create their own KPI’s.
These sort of things are our bread and butter, when working with Skagit County area small businesses.
Can we help?
Financial metrics are often common to all businesses. Some examples include:
* Average transaction value.
* Gross profit margin.
* A measurement of a company’s efficiency during the production process.
* How much is left over after COGS.
* Gross Profit divided by Total Revenue.
* Net profit percentage.
* The amount of profit for every $1 of revenue generated.
* Net Profit divided by Total Revenue multiplied by 100.
* Debtor days or receivable turn days.
* How long your customers take to pay you. (The sooner your customers pay, the sooner you can get that cash working for you.)
* 365 (days in the year) divided by (Sales on credit or invoice divided by Average Accounts Receivable).
More industry-specific KPI’s might include:
* Table turns per night.
The number of times a restaurant is able to sit customers at a table.
The number of hours a machine in the production line can run.
* Rejection rate.
The number of defects rejected in an assembly line.
Non-industry-specific KPI’s might include:
* Customers won/lost.
* Customer complaints/product returns.
* Staff sick days.
You must absolutely integrate the RIGHT measurements to get proper insight on your business’ performance.
I hope this gets your juices flowing. Many of these financial indicators are things that WE can help you to implement … if you let us.
And I’m grateful for our partnership, and for your referrals.
Padgett & Padgett, PLLC CPA
Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.