Business owners spend a majority of their day dealing with the daily operations as well as any issues that may arise. To stay on top of things, a successful owner understands the need for a comprehensive review of their business strategies on a regular basis. Below are 5 things that should be a part of your review.
- Banking relationships. Schedule a meeting with your financial officer and your banker to go over your cash balances and banking relationships. Address service concerns or problems that arose during the year. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.
- Insurance. It may seem like a time saver to just automatically renew your insurance policies.
Although, you may be missing out on necessary updates and revisions of your coverage. When you meet with your insurance agent, discuss your business operations. Focus on the risks from new ventures and changes in laws. Be sure you have appropriate liability coverage.
- Tax strategy. Make an appointment with your accountant to review your recent tax return to find tax saving opportunities. Are there recent changes to the tax code that will benefit your business? Be sure you’re using the correct business entity.
- Personal estate planning. More than likely your business is a significant part of your estate. If it’s your desire to pass it on to your heirs, it’s essential to have a good and current estate plan.
- Succession planning. It’s imperative that you have a specific plan for each key managerial position, including yours. Will you promote from within or recruit externally in the case of an unexpected vacancy? Which managers can be cross-trained to keep your business operating during the short-term absence of another employee?
Having a business strategy is vital to the success of your business. At Summit CPA we offer multiple resources to assist you with all of your tax and financial planning needs. Contact our office at 866-497-9761 to schedule an appointment with our advisors.