Running a business without regular financial checkups is like driving a car with no dashboard. You won’t see the problems until it’s too late. Hi, I’m Ken Hargreaves, I’m a certified financial planner and president of WealthGen Advisors. And today we’re going to discuss why it’s important to run a financial checkup on your business and the areas to focus on. First, it’s so important to review your financial goals. It all starts here. If you haven’t set your goals for a while, this is a must-have starting point. Ensure your financial goals align with current market trends and your business objectives. Number two, integrate personal and business plans with an eye on cash flow. Align your personal financial goals, like retirement, with your business strategy. With those aligned, you can then look at your cash flow for seasonal patterns and plan your optimal income to manage your tax bracket efficiently. While you’re doing that, pay close attention to excess cash reserves to make sure you’re earning interest or return on those dollars instead of them sitting in an interest-free checking account. Review and update your business retirement plan like your SEP IRA, your Simple IRA, or 401k for potential tax savings. Three is assess your business structure. So thinking long term, are you set up in the correct business structure from when you started your business? What’s the impact on your taxes, on succession planning, or estate taxes? That can mean switching from a sole proprietorship to an LLC or S Corp. Consider the tax implications of each structure and how they affect your bottom line. Number four is review your tax strategy. Get with your CPA to analyze tax strategy for opportunities to minimize taxes, especially in the context of business income and personal liabilities. So think of a business financial checkup as your company’s routine tune-up. Catch the small issues now before they turn into costly breakdowns later, and don’t be afraid to bring in a pro mechanic when needed. If you have any questions, feel free to click the link below to learn more, and as always, thanks so much for watching.
