Prudent Financial Planning Can Help You Avoid a Lot of StressComments Off
Small business owners should approach financial planning as an ongoing process. By doing so, you can avoid a major headache when tax season arrives, as well as put your business in an even better position for the coming year. Here are some steps you can take to stay on top of things:
Keep Impeccable Financial Records
The first step in avoiding a major financial headache is to keep complete and accurate records. If this is an area where you have been slacking, it’s time for you to put it at the top of your priority list. And if you feel like you’ve already got so much on your plate that you simply don’t have time to stay on top of your records, you need to seriously consider getting support for this crucial task through hiring or outsourcing.
Contact a Tax Advisor
It’s not uncommon for businesses to wait until the last minute to get their taxes in order. By going ahead and getting help from a CPA or tax advisor now, you can put yourself in the best financial position possible. There’s also a good chance that because you’ll have more time to implement them, your advisor will be able to provide you with a larger number of advantageous options.
If you don’t have a full retirement plan, you need to sit down with a financial advisor and put one together. And even if you do already have a plan, you need to carefully look over it. Whether you’re dealing with an IRA, Keogh or SEP, you want to ensure that you’re putting yourself in the best financial position now and down the road.
Since it’s not uncommon for small business conditions to change, you may discover that making a specific change to your retirement plan will be very helpful to you now and in the future.
Has Your Business Structure Kept Up with All Changes?
Although this is a very important question to ask, it may not be one that immediately comes to mind. The reason is since it won’t necessarily impact your day-to-day operations, it’s easy to put this type of “big picture” question on the back burner as you deal with issues that are more immediately pressing.
However, while it may not impact you right now, having the right structure for your business is very important. Even though a sole proprietorship may have been the right choice when you started your business, that may no longer be the case. Anything from rapid growth to wanting to take an investment can result in you needing a different structure for your business.