Three $$ Take-Aways from 2020
As I write this this, it’s the first working day of 2021 and thank goodness for that! I don’t know about you, but even though we’re still in the throes of the pandemic and still a few weeks away from the Presidential inauguration, I am thrilled to have 2020 in the rear view finally, and to be starting fresh on a new year.
In truth 2020 was not all bad. Well, it was mostly bad, but I do think there were three really big learnings when it comes to small business financials, that came out of it.
- 2020 underscored as never before the necessity for businesses to have their financials correct and up-to-date and to have a good numbers team, i.e., bookkeeper or bookkeeping resource + tax accountant. If you didn’t have clear 2019 financials in March and April, when EIDL Advances and PPP loans were first announced, getting your name and info into the queue for covid-related business support was a whole lot harder. Same on the back end of that: so much more challenging to make sure you were using the funds correctly, if you not only didn’t have clean, solid numbers but also financial expertise in your corner to help translate all the ins and outs of this every-changing topic.
- 2020 also really underlined the necessity of having some margins, some wiggle room in your business financials, i.e., some cash on hand. Businesses that were running close to the bone, over-extended or without access to credit, had a much harder time weathering the big storm that was Shelter in Place. Since Covid hit, we’ve done more Cash Flow work with more Clients than ever before, proving that old axiom that constraints make for good habits. [OK, not sure that actually is an old axiom. Could just be something I say. ;> ]
- 2020 also really highlighted the need to control costs wherever possible, to ensure your business is running efficiently. This meant lots of transition from outsourced to in-house practices, and to a rise in businesses wanting to DIY their books. While I do think every business benefits from hiring on professional outsourced financial expertise, still this is definitely a good trend. There’s no better way to really learn your books, to learn how your business operates, than to get your hands dirty in your own bookkeeping. For some this has become a permanent reality of reduced revenue streams, and we’ll be rolling out more resources to support DIY bookkeeping in 2021.
Which is where my new on-line course, From Baffled to BOSS, comes in. [all the celebratory emojis!!!] Now slated to be available in March 2021, here’s a sneak peak of new branding for Baffled to BOSS. Still making a few tweaks, but really excited to be making this and getting ready to have a bigger impact, help more small business owners this way in 2021.
How ‘bout you? What were the big take-aways in your business (or life!) from 2020? If there’s any way I can help you dial that in and/or make your plans for 2021, hit Reply and let me know. Always happy to assist
