As a business owner, you’re probably busy monitoring operations and dealing with everyday problems. Why not use the new year to conduct an annual review of these important topics:
- Insurance coverage. Consider sitting 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. This is especially important in the area of cyber insurance, as fewer insurers are willing to provide coverage and the cost of policies is going up.
- Tax planning and forecasting. Tax laws, both at the state and federal level, are constantly changing. These changes make tax planning a year-round endeavor. So while you’re busy preparing to file your 2023 tax return, consider getting a head start on tax planning for your 2024 tax return.
- Succession plan. Your succession plan should have a specific section 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. An up-to-date succession plan can also be invaluable if you have an unexpected vacancy.
- Banking relationships. Consider meeting with your banker once a year to go over services that could help your company. Address any concerns or problems you may have had over the preceding 12 months. Provide your banker with an outlook that may include the need for financing new equipment or a potential acquisition. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.
- Personal estate planning. As a business owner, your company may be a significant part of your estate. A good plan is essential if you hope to pass your estate on to your heirs. With constantly changing tax laws, meet with your estate planner annually to keep your plans up-to-date.
Please call if you have questions about any of these areas of your business as you look ahead toward the new year.
