From business reports to agreements and more, the new year brings new opportunities
It’s a brand new business year, which means it’s time to start planning out 2022. What will you change and what will you keep the same? What mistakes and successes did you learn from?
Making preparations now is one of the best things that you can do for your success. And trust us, it’s good to have peace of mind too.
As you look ahead towards the rest of 2022, these are five strategic steps you can take for your business planning in the new year.
1: Use Business Reports to Learn
There’s no shame in admitting it; there may be some important legal, insurance, financial, and tax systems that are not 100% dialed-in for your business. You’re far from alone!
Start 2022 by understanding the information you need to feel empowered and confident as the owner of your business. Your business reports can reveal vital information that helps you make smart decisions.
Connecting with the necessary professionals and getting your business planning in order could be as simple as setting up a couple of meetings!
Establishing these four critical pillars of your business foundation will take you to the next level. Legal, insurance, finance, and tax: get these locked up and you’re set up to succeed.
2: Update Your Legal Agreements
After going through your business reports, the next step is to reassess your agreements and contracts at the beginning of a new year. This lets you cover your legal bases, and will help you quantify the value of different business arrangements.
Be sure to clarify these agreements with team members, vendors, clients, customers, and business partners, who comprise the heart of your business.
It’s especially important to talk to your business lawyer to ensure your business entity is in full compliance, your intellectual property is protected, and your documents are up to date. This ounce of prevention can save you countless headaches in the future.
3: Review Your Business Insurance
As the lifeblood of your business, if something happens to you, your business and family could be left with hardships. That’s why it’s important to make sure you have the optimal amount and type of life insurance to create liquidity for those you leave behind in a worst-case scenario.
Planning for a new year is also a opportunity to review your business insurance. Be sure you and your business assets are covered in the event of a lawsuit or other damages.
4: Upgrade Your Financial Processes
If you aren’t already reviewing financial reports regularly, now is the time to start. Review your profit and loss monthly with your bookkeeper, or hold quarterly financial updates with your financial analyst, then make this the time of year when you implement these processes.
A few tweaks to your financial habits and budgeting could make the difference in your business’ profitability.
Small businesses, especially young ones, often have startling blind spots in their cost-to-income ratio. Speaking with professionals like your consultant, financial planner, CPA, or lawyer, can help bring these issues to light!
5: Strategize Your Taxes
Your 2021 tax results may have made you wish you planned more. That’s why the best time to strategize your taxes is EARLY!
Tax laws experience nearly constant shifts and updates, and these changes can impact your business. Here are just a few of the tax implications your business may need to strategize:
- Cost-of-living adjustments
- Research & Development (R&D) tax credits
- The tax factors of mergers & acquisitions (if you buy or sell a business)
- Potential tax increases in the Build Back Better Act
And this is just to name a few!
Speak with your CPA and business lawyer on ways you can optimize your tax maneuvers to keep more money in your pocket. Your business will thank you next tax season!
Start Planning the New Year Today!
Now is the time to take action on these 5 steps. Your business outlook for 2022 can be very bright, and with the right planning, you already have the tools necessary to thrive.
Don’t know where to start? Get in touch with us! We know how to lay the groundwork for you to bring your business dream to life.