Posts Taged small-business

The Year-End Financial Review for Small Business Owners

As the year winds down, you’ve probably got a lot to keep track of for your small business. Whether you’re juggling holiday orders or wrapping up big projects with end-of-year deadlines, you may not have time to think of much outside of your business to-do list.

Even if the end of the year isn’t considered the busy season for your industry, it’s important to take time for a year-end financial review to take stock of how this year’s finances will impact your brand’s activity next year.

Here’s a quick checklist of items to cover in your small business year-end financial review:

Your Books and Financial Reports

As the end of December draws near, remember that you need to wrap up your books for the year, in addition to your month-to-month reconciliations. Even if your company’s fiscal year falls outside of the calendar year’s ending, this is a good time to take a step back and look at the overall financial picture.

Your financial advisor can help you to remember which reports are most important to collect and may be able to provide a recommendation for a CPA who can help you get these in order.

Your Budget

While you’re running your numbers, it’s a good time to take a look at your budget and see where you met or exceeded expectations, as well as where you didn’t. This year’s budget is your most helpful tool in finalizing next year’s budget.

And if you simply operate without a budget or have been meaning to get a better grasp on your business’s expenses, there’s no time like the present to make plans to be more disciplined with company funds in the coming year!

Your Employees and Other Large Year-End Expenses

Depending on your industry, you may have some large year end expenses, like replacing equipment, purchasing materials to meet the holiday rush, or renewing essential licenses and permits. You may also want to provide a special bonus or holiday party for your employees.

Whatever your last minute large expenses are for the year, make sure you take the proper steps to plan for any tax benefits from these expenses, if applicable. And if you have large purchases around the corner, consider whether making these purchases during this calendar year might be a better idea for your tax situation.

Your Tax Strategy

Speaking of which, your small business tax strategy is something you need to check in on before the close of the year. You may have options for categorizing last-minute expenses or donations in a way to optimize your tax strategy going into the new year.

Your financial professional is the best person to consult regarding your tax strategy, since you may not know about certain tax obligations or deductions unique to your small business situation.

Your Financial Plan

Lastly, it’s essential that you put in work today to make 2020 a great year! How can you do that? Through careful financial planning.

While you may not be able to plan for every variable in your upcoming year, you should set some goals and develop a plan of action to pursue them. After all, you can’t know how to get where you’re going unless you have a destination.

Working with a financial advisor can help you to put your small business goals into perspective, prioritize them, and develop a plan to address them. A trusted advisor is an essential member small business owner’s team.

Are you prepared to make the most of your financial situation in 2020? Contact Jake Sturgill today to learn more about how a year-end review might provide you an advantage in the coming year.

Important Considerations for Small Business Financial Planning

With Small Business Week kicking off the month of May, this is an ideal time of year to consider the unique aspects of small business financial planning. After all, if you are a small business owner, you already know how much goes into the day-to-day of keeping everything running smoothly.

As a small business owner, there are resources available to help your business profits go the extra mile. Check out some ways to make the most of your small business income and save for a rainy day.

Keep Track of Your Finances

Of course, the most important aspect of managing your financial resources is keeping track of the money that you bring in. Accounting software can help you manage income, expenses, invoices, and more, so you can focus on the things that you do best.

You will also want to prepare a cohesive tax strategy that helps you to determine how much tax you’ll owe at tax time and how you can offset your tax expenses through legitimate business deductions. Before filing, you’ll want to consult with a tax professional to ensure that your numbers are accurate and that you comply with applicable tax codes to avoid unexpected expenses later on.

Prepare for a Graceful Exit

When considering retirement, developing a succession plan makes sense. But life can throw plans off course with a sudden twist, and in these cases, succession plans are even more important.

Your succession plan should ideally pinpoint a potential next owner or buyer and should outline how you will go about dispersing business assets, whether you plan to offer a buyout option to a co-owner or key employee or sell the business to an outside party. No matter if you’re a new business owner or a well-established entrepreneur, taking time to draw up a succession plan is an ideal opportunity to consolidate financial and business records and determine key contributors to your business’s success.

Your financial advisor may be able to help with organizing these documents and helping you to lay the groundwork for a solid succession plan. With that succession plan in place, you can have enjoy the daily challenges and thrills of running your business with the peace of mind that comes with having a plan for the future.

Add Value for Your Employees

Most of us are familiar with the 401(k) programs large companies establish on behalf of their employees, but even if you’re a small business owner, there are still options for you to offer retirement plans for your employees. Offering a 401(k) program can help you to attract top talent and invest your own retirement savings as the company owner.

In fact, preparing a retirement package for your business allows you to take advantage of pre-tax contributions, which will save you money on the personal and business side of things. Many business owners overlook this aspect of financial planning for their business and come to the end of their careers without a nest egg of their own.

But you don’t need to let this pitfall endanger your ideal financial future! At Puckett & Sturgill Financial Group, we can walk you through the ins and outs of choosing a retirement plan and can help you develop a customized strategy for implementing a retirement package for your small business. Your next step is as easy as contacting us.

What are the Benefits of Providing a Company Retirement Plan?

When you’re working through your strategy for adding a retirement plan to your employee benefits strategy, you may wonder what the benefits of providing this perk are for your business and bottom line. Even though you may want to offer a stellar package that attracts top talent or sets your business apart from your competitors, it can be hard to see how else your company might benefit long-term from such an offering.

However, you’ll find that offering a generous package can be a win-win scenario for your employees and for your business. Read on to learn more about the perks of your business providing a company retirement plan.

Benefits for You as an Employer:

When you choose to offer a company retirement plan, you can benefit in a direct way through the ability to invest in the plan for yourself. Saving for retirement through a company plan allows you to participate in a plan that you might not otherwise have access to.

You can also benefit from company tax breaks and incentives from the federal government when you choose to divert income into employee retirement funds. In fact, you can deduct your employer contributions from your current taxes, which can contribute positively to your company’s tax strategy.

Direct financial benefits aside, one of the biggest perks to offering a retirement plan is your ability to set your brand apart as an employer that provides competitive benefits for attracting new employees. If you find yourself competing for top talent or are working in an industry that’s not particularly well-known for going above and beyond when it comes to employee perks, you could find yourself in an enviable position just for adding an attractive retirement plan to your benefits lineup.

Even better? If your retirement plan is tied to company profitability, your employees may be more motivated to work hard and push productivity in order to build their retirement income.

Benefits for Your Employees:

Of course, one of your ultimate goals in establishing a retirement plan for your employees is to help them succeed in planning their financial futures. To this end, you should consider their financial well-being and ability to make long-term plans a significant benefit to your brand.

Even though it requires extra research and investment to establish and maintain a company retirement plan for your employees, you should consider this an investment in your employees’ overall happiness and job satisfaction. Both of these factors can contribute a significant return on your investment; after all, happy employees can be very motivated employees.

When you offer a company retirement plan, you open more savings options for your employees than they might achieve through using a personal IRA investment vehicle alone. Not only can they (and you, as a part of the plan) enjoy the savings benefits of the package, but you and your employees can enjoy the tax benefits of setting aside income for retirement.

Are You Ready to Talk Company Retirement Plans?

Another benefit of choosing a company retirement plan is that you and your employees will gain the opportunity to work closely with the financial advisor associated with your plan. Even if you have questions beyond the scope of your retirement plan, you now have a trusted professional to whom you can turn for personalized financial guidance.

If you’re ready to look into your options for adding a retirement plan to your company’s benefits package, contact Jacob Sturgill today to get a personalized look at your brand’s needs and to receive recommendations for moving forward with your retirement planning!

For Plan Sponsor Use Only – Not for use with Participants or the General Public.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.