There have been a lot of updates to the PPP and EIDL loan programs, and the situation continues to evolve. We will highlight the most pertinent points here for reference.
PPP application deadline extended
You can still apply for a loan through this program until August 8. There are still funds available – $130 billion of the $670 allocated for this loan program as of July 6th. Start with your own bank to see if they are accepting applications, and if no, we recommend applying through Lendio, BlueVine, or similar big lender. (It’s okay to have multiple applications pending, as long as you only accept one offer in the end.)
PPP loan forgiveness terms extended
Originally, you had only eight weeks to spend the PPP loan proceeds. This has changed, and you have up to 24 weeks to spend the money on qualified expenses. However, if you applied under the original loan terms, the extended terms might not be given to you automatically – this is one of those remaining gray areas. We strongly recommend you contact your lender and ask what you need to do to get the extended loan forgiveness terms.
Deadline for applying for PPP loan forgiveness
You have 10 months to apply for forgiveness, counting from the end of either the 8 week or 24 week period. However, you can apply for forgiveness as soon as you have used up the loan proceeds. There is now an “EZ PPP Loan Forgiveness Application” that you can use if you are self-employed with no employees, or if you did not significantly reduce your workforce. The exact terms are laid out in the instructions. These applications need to be submitted directly to your lender along with supporting documentation. The lender will submit it to the SBA. Contact your lender for instructions pertaining to your loan. Here are the links to the applications for reference:
- Revised PPP Loan Forgiveness Application and instructions
- EZ PPP Loan Forgiveness Application and instructions
Supporting documentation for PPP loans
Wherever possible, we highly recommend keeping things as simple as possible. If you have the ability to spend 100% of the loan proceeds on gross wages, that is best. Then all you need to provide is some payroll reports and returns. For example, to get 100% of your loan forgiven, if you have the choice between documenting two months’ worth of gross wages plus health benefit payments, rent, and utilities, or just providing four months’ worth of gross wages, go with the four months of gross wages. The documentation required will be much simpler, and your lender will have far fewer questions on your application.
EIDL Loan Program Update
The SBA portal for loan applications has been reopened. Unlike the PPP loan, this loan goes directly through the SBA. The loan terms they are offering are extremely favorable: 30 years at 3.75% interest. (2.75% for nonprofits.) Based on what we are seeing, the turnaround time for receiving these loans is now very quick – usually 1-2 weeks from date of initial application. The application asks for some revenue data for the period 2/1/2019 – 1/31/2020, and the loan offer is based off of these numbers.
If you are applying for any of these loan programs, or applying for PPP forgiveness, your bookkeeper or payroll processor should be able to provide you with any needed documentation, such as payroll reports or P&L statements. If you need a bookkeeper, or are looking for someone to help you with payroll, request a quote here.
Lots of people are struggling with the correct way to record the various forms of government assistance they have been receiving, and the advice I’ve seen out there is haphazard at best, dangerous to your bookkeeping at worst. How do you make the entries in your bookkeeping, and how do you track the balance of funds? How do the entries factor into your overall bookkeeping?
There is a lot of confusion around the federal loan programs that are currently available, particularly the PPP loan, and Backyard Bookkeeper would like to bring some common sense to the table.
The first point that needs to be made is everything around the Payroll Protection Program has been evolving from the moment it launched. Even now that we are well into our second round of funding, the situation continues to evolve. We still don’t know what paperwork or documentation will be required to submit to qualify for the loan forgiveness.
Until those regulations are clarified and the forgiveness process is laid out officially by the SBA, the best we can do is follow the rules that have been issued and keep meticulous records so we can produce documents when they are required. Here is Backyard Bookkeeper’s guidance on the matter:
The two founders of Backyard Bookkeeper, Alex Mic-Poder and Julie Delong, discuss keeping your business in the black. The perfect Black Friday video for businesses!
The 5 questions discussed included
1. What are the most common mistakes small businesses make that prevent them from staying in the black?
2. Is all debt bad?
3. Where can I get funding for my business?
4. How can I boost my cash flow?
5. Is it possible to make guaranteed profits? How can I make it more likely that my business will succeed financially?
Our first episode of Open Book: Discussions with a Backyard Bookkeeper. We talked with Julie DeLong, COO, about preparing your books for year end! Here are the 5 questions and points she answered/covered: 1. What is a short reconciliation checklist that you would recommend for businesses at year end? 2. What’s the most important thing to take care of for your 1099’s? 3. How can you figure out your estimated tax liability and how can a business owner prepare for that? 4. How do employee end of year bonuses work and how can a business account for them? 5. Talk about some of the year end procedures that businesses go through.
Kim Bullock-Hennix a highly requested, results driven abundance mindset expert provides the spiritual nutrients necessary to thrive supernaturally and eliminate the broke mentality. She will discuss transforming your minds for success.
Posted by Backyard Bookkeeper on Monday, October 14, 2019
We had the great privilege of interviewing Kim Bullock-Hennix! Lifestyle and Abundance Coach Kim Bullock-Hennix delivers an electrifying experience like no other. She penetrates the heart and soul of her audience on a cellular level. Kim is devoted to speaking, teaching and reaching the masses by transforming lives one day at a time. Coach Kim shares the power of investing in yourself with the tools you need to thrive successfully in spiritual, emotional, mental and financial lifestyle abundance. Kim is a highly requested, results driven Abundance Mindset Expert! She wrote a blog post for us below on transforming your mind for success.
Transforming your mind is a process that is a daily effort. As you become more aware of how you can Change your entire life with the power of your words you will begin to view your future differently. We all have the same 24 hours. How we choose to use those 24 hours will ultimately determine how far we go in life. Are you wasting time looking at gossip TV shows or reading gossip columns daily? Do you take the time out to fully analyze what you can do to change the course of your destiny? When you are pouring into your life prosperity thinking, abundance opportunities, and positive strategies this is when you will begin to manifest at great levels of success. You must expect miracles to receive miracles.
Keeping an elevated mindset and continuously putting forth an effort to live a bodacious life will reap beautiful fruits. Change is also a major factor to transforming one’s mind. Make personal development a priority for yourself. It deeply saddens me when I see that people do not take personal development seriously. Having the proper balance of both professional and personal development is extremely important to live and abundant lifestyle. Abundance is having a full 360-degree experience of life and it’s blessings. Learn to meditate in your morning routine and visualize the best version of yourself. Focus on how you can allow abundance and prosperity to flow into your life with ease. Become a magnet for miracles and focus on your long-term vision. Then finally turn failures into lessons and not regrets. Understand and know that we fell forward to success do not beat yourself up if you are not where you want to be in life. Remember, it’s not where you start it’s where you finish.
About Author Kim Bullock-Hennix
Coach Kim enjoys serving women to achieve greatness with her uniquely designed Diamond & Platinum Coaching Packages, Enriching online Group Programs, and Phenomenal Women Empowerment Seminars. She is the Founder of the Ambitious Women Movement and Leader in her Ambitious Women Facebook Group with over 4600 members that she inspires. Kim has a global influence of more than 40K followers on her Facebook Business Page and over 18K on Instagram. Kim lives in Las Vegas with her husband and has 3 extraordinary children.
Saturday and Sunday pass by way too fast. Then it comes: Monday morning. Does anyone else suffer from sober weekend hangovers? If you do, we guarantee that you are not alone! We did some research and found some good tips from by Michael Cheary, a content and social media manager, for helping your Monday be just as fabulous as your weekend. And no we’re not talking about the stereotypical advice like getting up earlier, setting an alarm, or eating a good breakfast (although those all certainly help). These are ideas that you may not have considered to add some pep to your Monday morning step (that flows off the tongue well).
- Find a Monday happy place. Make your Monday’s stand out. Think of what makes you spark and try to recreate it on Mondays. Maybe this means lunch with a co-worker, listening to your favorite playlist as you get ready, or bookmarking something interesting to read during your breaks.
- Put things in perspective. Cheary says, “You may be sleepy. You may lack motivation. You may have even forgotten your umbrella on the day you finally brave the suit/short combo. But no matter how bad your day is, it could almost always be worse. If all else fails, hey, at least it’s not Wednesday.”
- Remind yourself about other successful Mondays. Ups and downs come, but remember you have had successful Mondays before. Cheary reminds us of some great historical accomplishments on Mondays. For example on a Monday the man first walked on the moon, the UK’s first cinema opened, and the Deathstar was blown up (probably). The list never stops!
- Make someone’s day. We saved the best for last. Everyone is fighting the Monday morning battle. Don’t be that guy or gal that makes it worse for everyone. Smile, invite a friend to lunch (or better yet pay for their lunch), send a thoughtful text, or say hi to coworkers in the office.
We hope these tips help you put a pep in your step, and now give you something new to think about on Mondays. If you want to hear the super practical tips like setting the alarm and going to bed earlier, we won’t leave you hanging! Check out the rest of the pointers here.
And as Cheary says, “Still not convinced? Sometimes it’s not Monday, it’s you. Maybe find a job worth waking up for!” To that we say check out our Facebook page or our website to see if we are hiring. We often are!
Last week I was privileged to attend an event, called Bearfoot Boardroom, with our very own, Julie DeLong, COO of Backyard Bookkeeper. We heard from Dana Ball, a small business lawyer, and Julie. Dana started out by teaching us how to protect ourselves and our small businesses. One point that I found useful (because I’m guilty of this) is to make sure you don’t just use Google to create contracts. The importance of having a binding contract specific to your business is essential in protecting yourself, your business, and your assets. Small business owners have a tendency to DIY as much as they possibly can. However, when it comes to contracts it’s worth the small fee to have it done right initially.
The other point that really stood out was Dana’s standard of communication with clients. She sets a standard to get back to every client within 24 hours. I really appreciated how she emphasized that our clients are the reason for our business.
After Dana spoke, Julie took a turn and spoke about bookkeeping for a small business. She helped us understand the basics of finding a good bookkeeper. You want to hire a bookkeeper that knows their stuff, saves you time, and gives you valuable information such as balance sheets, profit and loss statements, etc. She shared tools that make it easier for business owners such as mileage tracking apps. She also stressed the importance of having updated bookkeeping, so you can make educated decisions and know what your return on investment is, etc.
The real benefit from this event was the conversations that happened in between the speakers. Both Dana and Julie brought up several points that had us talking and asking important questions. We connected with each other and opened up in ways that allowed us to improve our current situation. That connection is what events like these are for. The positive interactions we had together, and those “light bulb” moments allowed me to leave with specific goals. Thanks to Ellen with Empowering Concepts Group for putting this together! I’m looking forward to more events like this in the future.
Author Jess Gainer-Office Manager, Customer Service, Tech Support, and Super Hero. She likes doing things well and wants all those she connects with to feel happier when they leave her presence. Her background includes teaching technology, running an office, bookkeeping, and protecting the world from evil one happy moment at a time. Her passions include extreme sports, building and fixing stuff, making music, playing everywhere she is, and learning.
As a bookkeeper, it has been my privilege to work with hundreds of business owners as they follow their passion to build businesses in all kinds of industries. It is exhilarating when they thrive, and can be heartbreaking when they fail. In any endeavor, but especially when building your own masterpiece, it is essential to consider the costs and make sure you have the resources to reach your goals. Since dealing with financial data is my specialty, I’d like to share three practical tips for ensuring your masterpiece business is financially sustainable and will be able to serve the purpose you dreamt for it.
First, understand the true cost of selling your product or service.
Do you have a handle on what the cost per unit is in your business? If you sell a product, you have a cost associated with making or buying that product, but you have other directly related expenses, too: the time it takes to process or prepare the product, packaging costs, merchant fees, etc. If you are providing a service, you may have some payroll costs, processing fees, perhaps some supplies or travel expenses, and certainly the cost of your own time. What is the true cost per unit for your business?
When you know the true cost per unit, you can start asking the critical questions for business planning and development. Am I charging enough? Are there ways I could reduce my direct costs? Is my gross profit (revenue – direct costs as calculated above) enough to cover all my other operating expenses? Is it enough for me to pay myself? How many units do I need to sell to pay myself what I want to earn, or reach the goals I have for my business?
Knowing and understanding these numbers will help you build a solid financial foundation for your masterpiece business.
Review your balance sheet regularly.
It’s a common mistake for business owners to neglect their balance sheet. They are so focused on making profits they don’t consider it very important and just focus on their income statement. However, the balance sheet is where the major bookkeeping errors show up. If you know you have less than $10k in inventory, but your balance sheet shows $100k, then something is wrong. If your balance sheet shows bank or credit card balances that are negative, then something is wrong. If any of the asset or liability accounts don’t make sense or show an amount that seems unreasonable, then something is wrong. Maybe data is missing, maybe data has been entered in duplicate, but these are all signs that the numbers on your income statement can’t be trusted, and you need to get professional help with your bookkeeping.
Another key when looking at financial reports is to review accrual-based reports, even if you are reporting cash basis financials on your tax return. Accrual reports will tell you so much more about the long-term health of your business. Cash reports can only tell you how much money you have right now; they don’t give you any clue whether you will still have money next week, next month, or next year.
This is why monitoring what’s happening on a regular basis by looking at the right reports is so essential.
Pay yourself – the right way.
Most business owners know they are supposed to keep business and personal separate, but they still treat the business accounts as an extension of their personal and draw money whenever they need it. It is healthier for your business if you treat it as truly separate, and put yourself on a regular payment schedule. If your business is a corporation, then you are likely paying yourself via paycheck and additional distributions. Otherwise, you are probably just taking draws.
Either way, treat the business as a truly separate entity, with separate goals and budgets. Think of it as your masterpiece, and treat it accordingly! In a way, it has a life of its own, and you need to respect that. It is so easy as a business owner to make the business’ money subject to your personal financial needs, but simply taking a larger draw when you have a higher than normal personal bill to pay, for example, can jeopardize your business’ financial goals. Treat your masterpiece with the respect it deserves, and give it room to achieve its true potential.
This article was written by Julie DeLong and published by Choice Magazine.
Julie is an experienced bookkeeper and accountant. Since the founding of Backyard Bookkeeper in 2008, she has worked with over 250 different companies in a wide variety of industries, including construction, nonprofit, health care, consulting, retail sales, online sales, legal, entertainment, real estate, and many more.
Julie also does most of the actual number crunching for the business and would rather play on Quickbooks than Facebook. She has a weakness for superhero movies, Rachmaninov, and chocolate, and loves reading in her spare time.
The 68th Annual UN Conference in Salt Lake City came to an end today. It was by far the best booth experience we have ever had. Not only was the entry fee affordable but the conference attracted 6,000 registrants! We were so grateful for the new people we met. Lots of companies out there in the world, initiating good and making change!
As promised, we want to share the last half of the interview. Before we do that, we want to talk about our conference booth display. We decided to portray all of the nonprofits we work and those with a social agenda. Backyard Bookkeeper loves working with nonprofits and organizations whose mission it is to make our world a better place. It is one way we can support worthwhile social agendas. Those agendas are chosen by people who are invested in making their communities a better place. They educate people, raise awareness and funds, campaign, and utilize volunteers.
The nonprofits and social focused companies we work with include USEE, HEAL Utah, the INN Between, CAWS, Midwives College of Utah, The Wave Women, Utahns Against Hunger, and Digital Respons-Ability. Each one builds sustainable and inclusive communities. We are honored to be a part of their well-being in a small way.
To wrap up, we wanted to share the last part of our interview. Here is a link to the first part of our interview if you wanted to go back and read that.
These questions are way more deep and go into more controversial issues. These are our own opinions, and we would love to hear yours.
8. How does proper infrastructure benefit the well-being of the people?
We think a good infrastructure not only keeps people safe, but also makes important resources available and accessible to all. It’s not enough to make it possible for anyone to start a business. We also need to inform everyone where to go to find information and support. No matter how great your resources, if not enough people are using them, then it isn’t doing much good.
9. How can public and civil society tap into the power of technology and harness innovation?
We think that technology simplifies many tasks that would otherwise be too cumbersome for one person to handle. Without technology, it takes a single full time accountant to ensure a small business is compliant with all tax and financial requirements. However with AI and software, that same work can be done for a fraction of the cost and time. Technology spreads the benefits of innovation to significantly more people. Whatever can be done to make technology affordable and accessible to as many people as possible is a good thing. Also society can provide education on the proper use of technology.
10. What is impact investing and why is it a powerful tool to build communities?
BB is always proud to be involved with organizations that benefit the community or improve social welfare in any way. We provide accounting services to those organizations at competitive prices—our own form of impact investing.
11. How can local and regional governments collaborate to create a more sustainable and inclusive communities?
The key is to write laws and implement policies that make it easy for small businesses to operate and remain compliant in all ways. Additionally, a significant effort needs to be made to not just to talk about inclusiveness, but to actually INCLUDE everyone.
12. How can the public build communities through education?
As I said above, beyond just educating people, we need to also have decision making processes that INCLUDE all stakeholders.
13. What new forms of global cooperation will we need to shape the future we want?
We need to learn to compromise, discuss peacefully, and negotiate. These days we seem to choose political leaders who are increasingly farther away from the center, as if “standing up for your beliefs” without the possibility of compromise were the best thing for a leader to do. But that means nothing of substance can ever get done. Being able to discuss problems peacefully, learning to see and understand another’s point of view, and finding productive ways to compromise is the only way we will ever achieve our goals as a society.
14. How can society recover from conflict and nurture peace?
We need to address the basic needs of each individual for food, clothing, shelter, and community. This is possible both through charitable work, but it might be even more important to make sure that all people regardless of gender, race, etc, have an equal opportunity to participate in the economy and the community. When people’s basic needs are satisfied, peace becomes possible.
Thanks for following along with us for the 68th annual UN conference! Maybe see you next year, if the UN comes back!