NEWS & RESOURCES

Authored by: Bradi Dahmen – Director of Wealth Management, Cordell, Neher & Company, PLLC

If you own a business, then you know your personal financial picture is closely related to your professional success. Whether you are a small or large business owner, it’s essential to collaborate with a holistic financial advisor who can provide knowledgeable expertise and resources outside your comfort level so you can focus on what you do best. A comprehensive financial advisor not only uses investment, insurance and estate planning strategies but also approaches your financial plan from a tax-smart perspective that can help to save you money and keep more of what you earn invested in your business.

Here are five key areas to consider for your business:

Risk Management. Ensure you have a retirement plan for yourself and your employees to take advantage of tax-saving opportunities. Offering retirement benefits can boost employee retention and recruitment while providing tax advantages for you as a business owner. My advice is to work with a financial advisor who can help advise or set up a retirement plan for your business, fulfill fiduciary services to mitigate any risk that might ensue, and help select and monitor the performance of your benefits provider. 

Managing Assets. As your business grows, it's important to have a financial partner who can guide you in allocating your assets and researching investment opportunities. A customized business plan that aligns with your goals and provides operational support can help sustain potential growth and navigate seasonal fluctuations. For example, imagine your business has peak months throughout the year where income and cash flow are significantly higher than in other months. A financial advisor can help implement strategies to ensure you have enough savings to withstand slower seasons and succeed in busier times.

Tax Planning. Minimize your tax burden by implementing tax planning throughout the entire year – not just during tax season. Tax planning helps you take a big-picture view of your finances and identify opportunities for deductions, credits and tax incentives while staying current on tax law changes and regulations to avoid unnecessary fees. In 2023, financial services are no longer à la carte, and it’s more important than ever to have a deep bench of experienced individuals working in tax planning and financial services by your side. When proper tax preparation and planning are utilized together alongside a complete financial plan, you have the potential to keep more of your wealth for yourself, your loved ones and your business.

Succession & Estate Planning. Business owners often tend to wait until it is almost too late to establish a proper estate plan for the future of their business. However, it is crucial to implement estate tax strategies and a succession structure to safeguard the value of the business in the face of unforeseen circumstances, especially if you run a family business. It’s worth noting that the Tax Cuts and Jobs Act, a tax overhaul passed in 2017, temporarily increases the exemption. Yet, it is important to know that this is set to expire after 2025. The estate and gift tax exclusion will revert back to its pre-2017 level of $5 million, adjusted for inflation.

Your financial advisor should provide personalized guidance, inform you about industry changes and help you make strategic financial decisions. Make sure you are working with a partner who understands that business owners have countless daily demands on their time. Whether it’s a buy-sell agreement between owners or an income preservation plan for your loved ones, your financial advisor should offer comprehensive support for your complex business planning needs. If you are looking for a financial advisor or a second opinion, I encourage you to reach out to our team through our website at cnccpa.com or give us a call at (509) 663-1661.