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Business owners are often so focused on doing whatever it takes to make their business successful, that they have little time for important financial planning and protection matters. With 2007 almost at a close, now is a perfect time for business owners to take a step back and perform an important year-end checkup on the company’s “vitals.”
The Hartford, one of the nation’s largest financial services and insurance companies, recommends the following five “evaluations” to ensure your business remains in tip top shape for years to come!
Just because your company is a sole proprietorship, a general partnership, or a limited liability company does not mean it needs to stay one. Businesses evolve and grow; and as such, it’s important to speak to your accountant/attorney and assess the structure of the company.
Take this time to ask what type of insurance coverage you need. If your company has grown, whether in the form of investment in new office equipment or the hiring of key staff people, you need to understand the value of your expansion, the increased risk, and how to protect it.
Review life or business changes to determine if there are any new qualifications or disqualifications for tax deductions. There are a number of steps, rooted in doing the right homework and seeking specialized financial guidance, a business owner can take to set themselves up well for tax time.
No time like the present to consider your future. If you haven’t already done so, now is the time to set up a retirement plan. As a great end-of-year bonus, payments to your retirement plan will reduce your income for this year and translate into significant dollar deductions. If you are already contributing towards your retirement fund, make sure to take advantage of new developments and maximize the changes in percentages and dollar amounts allowed in particular plans.
No matter what stage your business is in, make sure you have a transition strategy. No one knows what the New Year will bring; in turn, being prepared for anything and everything is critical to your company’s health and the owner’s future finances.
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