As a business owner you more than likely spend most of your time observing and dealing with the everyday operations and problems of running a business. However, every now and then it’s a good idea to take the time to review the health of your business. You should plan to give your business plan a good check-up at least, once if not twice a year to make sure operations are running smoothly. Here is a short list of topics to get you started in the right direction.
- Insurance. Rather then automatically renewing insurance policies when they come due, have a sit down with your agent. Review your business operations, focusing on any changes. Discuss types of risk that could arise. Ask about new developments in business insurance. Use your agent's
expertise to identify risk areas and suggest suitable coverage.
- Tax strategy. Consider adjusting taxable earnings for the year, perhaps by accelerating expenses or delaying income at year-end. If your business reports on the cash basis, you could boost deductions by declaring and paying bonuses in December rather than in early January. Deferred invoicing or early purchases can also reduce your tax bill.
- Customer survey. Track customer satisfaction with an online survey. Focus on questions that reveal how well your company performs in areas such as prompt service, staff responsiveness, and understanding of customers' problems. Ask your customers for insight on potential new products or services, and let them know how much you value their business.
- Marketing review. Are your current methods and channels working well, or are you simply doing what you've always done?
- Succession planning. Do you have a specific plan for each key managerial position, including yourself? Are you prepared for a short-term absence or a permanent vacancy? Your plan might point out the necessity of promoting from within or recruiting externally.
- Banking. Meet with your banker. Ask about new products or services that could help your company. Address service concerns or problems that occurred during the year. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.
An annual business checkup will help you evaluate current performance of your company. It can also help you with managing and executing any future operations as well as providing a plan to keep your business on the right track.
At Summit CPA we offer multiple resources that will help get your business on the right track. If you need assistance, contact our office at (866) 497-9761 to schedule an appointment with our advisors.