If you own or manage your own small business, you're probably busy monitoring operations and dealing with everyday problems. But there are five important aspects of your business strategy that you should review and update every year. These updates are essential for a successful business and and long-term personal achievement.
1. Your business insurance coverage.
Don't just automatically write a check to renew your insurance policies when they come due. Instead, you should sit down with your insurance agent every year. 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.
2. Your business tax strategy.
A month or so after you've filed your tax return, make an appointment with your tax advisor. Go over your return together and identify opportunities for tax savings. Question everything, starting with whether you're using the right form of business entity. Ask about recent changes in the tax code and how they might benefit your business. Make your advisor an active "partner" in your strategy.
3.The succession plan for your business.
Review your succession planning annually. You should have a specific plan for each key manager position, including yourself. Be prepared for a short-term absence or a permanent vacancy. Your plan might mean promoting from within or recruiting externally. But an up-to-date plan can be invaluable if you have an unexpected vacancy.
4. Your business banking relationships.
Annually, you should examine your cash balances with your CPA or small business accounting service. Then meet with your banker. Ask about new products or services that could help your company. Address any service concerns or problems you might have had. Look for ways to reduce idle cash, boost interest earned and improve cash flows.
5. Your personal estate planning.
If you're a business owner, your company is likely to be a significant part of your estate. If you plan to pass a business on to your heirs, a good estate plan is essential. Since it is likely that your company, your personal circumstances, and the tax laws are continually changing, an annual update with your estate planner is recommended.
Charles P Myrick CPA can work with you and your attorney to assist you with the reviews and planning necessary to your business's long-term success. We specialize in small business accounting services that help create systems for a successful business strategy. Give our office a call.