It’s time to button up the year and look ahead to 2017, and with that comes preemptive tax and business planning with today’s guest is Alan Hill, principal and director of Rea’s dental services division. Alan has developed a unique service offering for dental professionals, but many of the techniques he uses can be applied to across a wide variety of industries. Here’s what he has to say …
If you don’t sit down at least once a year to give yourself selves a complete business physical, you are wasting your time and will have trouble moving the needle in the year ahead. When working with his clients, Alan starts the business physical process by gathering the business owner and their key advisors to go over key issues like finances, bonuses, retirement plans and personal life. He also makes time to address the specific challenges and concerns clients bring to the table. In other words, this is an excellent opportunity to bring all your professional advisors together in one room to express what is happening in your business – the good, the bad and the ugly.
We’ve learned to start by asking ‘what’s going on?’
Alan says the biggest issues that might come up in these meetings include:
- Revenue – this is always a big topic at these meetings, and for good reason.
- Cost Savings – Are you taking advantage of strategic planning opportunities? For example, if you are projecting a huge tax liability at the end of the year, you may be able to take steps early on to defer or reduce your tax burden. Ask yourself if you can:
- Push some income into next year.
- Make a large purchase or pay off a debt this year.
- Accrue contribution for your retirement plan.
- Employees – Your business can not continue to run without nurturing positive relationships with your people. Don’t overlook discussions about evaluations, benefits and compensation. It’s getting harder and harder to find good employees. So when you do, invest in their professional development and earn their long-term commitment.
And with the experts together in one room, the time to identify solutions that will benefit the business as a whole while advancing the needle is now.
Once you’ve had a thorough discussion about the present state of your business and your aspirations for the year ahead, start considering your personal financial wellness and the financial wellness of your employees. For example, when was the last time you reviewed your life insurance policy or encouraged your employees to review their policies? This is a great time of year to ensure that your correct beneficiaries are in place.
And then there is the topic of your company’s business valuation. In Alan’s practice, any business should get a formal evaluation done at least once, and then if you and your partners can agree on the change from year to year that’s fine. Alan recommends updating that formal valuation every five years.
If you’re wondering how Rea & Associates is doing or if you are looking for some tips to get 2017 started out on the right foot, check out our website at www.reacpa.com/podcast. We’ve got articles written by seasoned thought leaders, resource centers and a ton of really great calculators. You can always send questions tor rea.news@reacpa.com.
article & insight
Don’t Wait Until It’s Too Late! Year-End Tax Planning Tips – When you start planning and projecting what your taxes might look like at the end of the year, you have the ability to make changes and take actions to make your situation a more favorable one. In other words, the first step is gaining a better understanding of your specific tax situation. Then you can start looking at some of the various tax planning opportunities to see which ones might be applicable and beneficial to your situation.
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official transcript
Click here to read the official transcript for episode 56: “Keep Your Business Healthy, Conduct A Yearly Business Physical.”