Although the pandemic began in 2020, and Covid-19 restrictions have been lifted, the Bay Area community is still struggling. Massive tech layoffs (https://www.sfchronicle.com/tech/article/bay-area-layoffs-17750576.php) continue to occur.
Google Alphabet laid off 12,000 employees globally in January 2023; this includes around 1,600 Bay Area employees. Smaller local businesses (https://dothebay.com/p/permanently-closed-sf-bay-area-businesses-restaurants-bars-music-venues-covid-19-coronavirus) are closing up shop too. Even if they survived the lockdown, recovery was not as robust as needed, and many stayed in the red far too long.
The loss of local businesses can be devastating to a community. The vibrancy diminishes when restaurants, breweries, social clubs, boutiques, and delis close. As CPAs who help people manage the financial work of local Bay Area businesses, we understand the struggle and hate to see this happen.
The good news is Bay Area residents are resilient. They understand a loss doesn’t have to mean it’s time to walk away from owning a business again. Many big tech employees take their severance and look around to see what they can do next. And when they decide, it will be essential to put together a solid financial strategy for the new venture.
FOR THOSE READY TO DREAM AGAIN, THE NEXT TECH START-UP MIGHT REQUIRE A CPA
What happened in 2020 was unusual, to be sure. People who lost their jobs or businesses knew several factors were entirely out of their control. Although people are still recovering from the sting of loss, they aren’t giving up on their dream. The San Francisco Chamber of Commerce shows a steady stream of new businesses opening in the past 12 months (https://sfchamber.com/resources/data-statistics/). This entrepreneurial spirit is what makes our region so dynamic and sustaining. And we are proud to help business owners create a strategy to remain fiscally sound in the coming years. That includes monthly bookkeeping support to help ensure a quick and clean end-of-year business tax return.
If a Bay Area local is ready to grow their current business, bank loans require audit financials. Safe Harbor accountants can help complete and file the paperwork (https://www.safeharborcpa.com/management-financial-advisory/). Our accountants are also here to provide financial advice (https://www.safeharborcpa.com/business-tax).
The entrepreneurial spirit is still alive in 2023. Starting the next tech startup might require a CPA. A solid financial strategy and partnering with a financial/tax expert is the best route to long-term success!