Economic Independence or Financial Chokehold
- LaToya Bines
- Apr 3
- 3 min read
Updated: Apr 5
As the U.S. Department of Treasury oversees and manages changes from the government, U.S. based businesses are facing financial uncertainty. Recently business owners (domestic and foreign) were faced with the possibility of paying penalties for a failure to file their Beneficial Ownership Information Report (BOIR) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury by March 25, 2025; however, on March 26, 2025, FinCEN issued a statement saying domestic reporting companies were exempt from the BOI requirement, and that existing foreign companies were still required to report BOI by April 25, 2025. The purpose of BOIR was to reduce the number businesses operating in the U.S. from engaging in illicit activities such as money laundering.
Business owners recognize the importance of properly managing and overseeing their finances. Not knowing how much money is coming in and going out of your business can lead to a devasting outcome. Over the last few months, small business owners have watched corporations like Khol’s, Joann’s, Game Stop, and Party City file for bankruptcy, closed stores, or have gone out of business.
In the United States, April is recognized as financial literacy month. The President of the United States deemed April 2, 2025, “Liberation Day”. As business owners entered the second quarter of 2025, the U.S. President announced he would implement tariffs on all imports. Managed by the Treasury Department, foreign companies will receive a minimum of a 10% reciprocal tax on all goods coming into the United States.
Foreign companies wanting to avoid tariffs would have to produce their products in the United States. Domestic companies are preparing for a competitive environment as costs increase. Product based businesses who receive materials outside of the country may be forced to increase prices and reduce expenses. Service based business may have to compete with lower prices from overseas competitors.
There are over 30 million small businesses within the United States, and 5.5 million of them were created in 2023. Unfortunately, nearly 50% of all businesses fail within the first five years. Let’s face many businesses that were created in 2023 are likely to close their doors sooner than later, especially if they do not have a handle on their business financial health. Understanding your financial health can help keep your business afloat. Below you will find a few tips and reasons why hiring a bookkeeper could be in your company’s best interest.
1. Know Your Numbers Beyond Revenue
Many business owners focus solely on revenue, but understanding profitability is key. It’s important to track expenses, cash flow, and profit margins to get a full picture of your financial health. A bookkeeper ensures that your financial reports are accurate and up to date, helping you make data-driven decisions.
2. Separate Business & Personal Finances
Mixing personal and business finances creates confusion and can lead to financial mismanagement. A bookkeeper helps you maintain separate records, ensuring that your business transactions are properly categorized. This not only makes financial management easier but also gives you a clearer view of your company’s performance.
3. Monitor Your Cash Flow Regularly
Cash flow—the money coming in and going out—is the essence of any business. Poor cash flow management can lead to missed payments, late fees, and financial instability. A bookkeeper tracks your accounts receivable and payable, ensuring that you always have a healthy balance to cover expenses and invest in growth.
4. Use Financial Reports to Make Informed Decisions
Understanding your financial reports—like profit and loss statements, balance sheets, and cash flow statements—can help you spot trends, reduce unnecessary expenses, and plan for the future. A bookkeeper provides accurate, timely reports so you can make confident business decisions.
5. Save Time & Focus on Growth
Managing your own books can be time-consuming and stressful, especially as your business grows. By hiring a bookkeeper, you can free up valuable time to focus on what you do best — running and expanding your business. Plus, with professional financial support, you’ll avoid costly mistakes and gain peace of mind.
A bookkeeper is more than just someone who tracks your expenses—they are a key partner in your financial success. If you're ready to take control of your business finances, consider working with a bookkeeper from Elevated Standards. Email info@elevatedstandardspa.com to get started.
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