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Aspiring 8a

8(a) Certification – Make Timely and Accurate Financial Reporting your New Year’s Resolution

If you own or manage a small business, and are thinking about obtaining an 8(a) Certification in 2021, think about making timely and accurate financial reporting your New Year’s resolution.

 

The SBA, as part of the 8(a) Business Development Program, wants firms to function as normal businesses should. This is because the 8(a) BD Program has the capability of adding Millions of dollars in additional sales to the firm.

 

The SBA wants firms to prepare timely and accurate financial reporting, as this is a key tenant to good business management. If the firm is not prepared when it enters the 8(a) Program, it’s likely it will become even more difficult to get its’ financial reporting in order once they are faced with higher than normal growth, often associated with 8(a) Program participation.

 

Below are the financial statement regulations for applying for the 8(a) Certification:

 

Financial Documents

Required Documents

Notes

Year End Financial Statements

Balance Sheet, Income Statement, Tax Return

Financial Statements must tie to the firm’s Tax Return

Compilation

Balance Sheet, Income Statement

The financial statements cannot be more than 90 days old at the time of the 8(a) application.

 

As a consultant, a common problem with new clients is that their financials are in disorder. This issue becomes the starting point for the application process, because without accurate financial statements, one should not move forward with an 8(a) application.

 

Once a client sets up an accurate financial reporting system, I have found that they use this information to cut costs, focus on the areas that make them the most money, as well as lower their anxiety with regard to running their business. For these reasons, it is important to make one of your New Year’s Resolutions to consistently maintain accurate financial reporting, and then to apply for the 8(a) Certification.

 

If you are wondering how an 8(a) Certification could be advantageous in helping expand your business through federal contracting, I always recommend contacting an industry expert such as ez8a or Advance 8a. They have the expertise in evaluating your firm's potential, and neither charge for an initial consultation.

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