Planning Your Company's Financial Future

It’s tax season, which provides a good opportunity to assess your business and take stock of where you are, where you’re going, and what steps you can take to plan for a successful year ahead.

Look at the Big Picture

Review your business's corporate structure to determine if it's working for you. Analyze the company's cash flow to see if there are financial strategies you could use to improve your bottom line. As a business owner, you must be aware of your total financial situation before making changes or investment decisions. Keeping personal and business accounts separate can help you weather a downturn in the business, since financial support from personal accounts can keep you solvent.

Protect Your Assets

An unexpected event could upend your small business. Insurance can help protect it. Types of insurance coverage you may want to consider are life insurance to protect your family's finances should anything happen to you, and business insurance, including business liability insurance, property coverage, umbrella insurance, workers' compensation, and so on.

Choose a Retirement Plan

Choosing a retirement plan for yourself and your employees should be high on your list of planning priorities. Many retirement plan options are available for small businesses. If you don't currently have a plan in place, review each option and select one that's appropriate for your company.

Create a Backup Plan

What would you do if profits took an unexpected downturn? Having a financial cushion can help your business through any lean times. Consider alternative ways to make money, such as adding a new product line or service, to keep your customers engaged with your business and help you turn a profit.

Set Strategic Goals

What are your business goals for the next five, 10 or 20 years? If you can't answer that question, it's probably time to draft or revamp a plan for your business's future. Setting financial and other objectives gives you a roadmap to follow and a means to determiine whether you're on track to reach your goals.