Businesses that have survived the pandemic share many characteristics, including creativity, agility, and resilience. They also reflect smart management. If you have managed to make it through then you deserve a pat on the back, but this is no time to rest on your laurels. COVID is still with us, and it continues to cost billions in costs that are obvious and not-so-obvious. While you are calculating your expenses, make sure that you’re including the hidden costs that may be affecting your cash flow and bottom line.
According to a recent study conducted by the non-profit research organization Integrated Benefits Institute, since the pandemic’s start American companies have lost almost $1 billion per week in employee absences. Expenses included in their $78.4 billion calculation included the cost of sick leave and benefits as well as disability wages and state disability insurance.
Though the impact on a specific business will depend upon its own unique circumstances, it’s as important to include these costs in your own calculations as whatever you are spending on masks, hand sanitizer, and other more tangible expenses. Employee absences, the stress caused by the pandemic itself as well as concerns over childcare and other factors all translate into lost productivity and potentially lost revenue.
About Martinez & Shanken, PLLC
Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services. Partners Deborah Martinez and Earl Shanken work to ensure your business accounting is done with integrity and to your satisfaction.
