Running a small business requires careful management of various aspects, including finances, risk management, bookkeeping, and legal compliance.
While you may be a great small business owner, seeking the expertise of professionals in banking, accounting, insurance, and legal domains may be critical for the long-term success and stability of your business.
Whether you're currently serving, retired or married to the military you're no stranger to challenging complex work. But we know better than most that even the strongest soldier is nothing without their support team. Having a small business is no different.
Choosing a bank for your small business.
Your business's financial health is the backbone of its operations. Establishing a relationship with a reputable bank and using a banking professional's services can offer numerous benefits.
Do I need to open separate business accounts?
Opening a dedicated business account allows you to separate your personal and business finances, ensuring better financial management and simplifying tax filing.
One of the major benefits of a dedicated business banking account is clean records. A challenge that many sole proprietors may find is that their business income and expenses could be comingled with other non-business-related transactions. Having separate accounts dedicated to business use makes for an easier paper trail and history of your business.
Getting your small business a line of credit.
Your business may need a line of credit or a loan at some point. Having a relationship with a business banking professional or institution may ease the process of getting the credit support your business may need. Business credit cards, lines of credit or loans can provide the necessary capital for growth or to overcome temporary financial setbacks. Without a business bank or professional, your business is unknown to potential lenders and may face obstacles getting financial support.
How do I get help with my small business customer transactions?
One of the key experiences that your business should offer is ease of use or ease of doing business. If you're selling a product, you want to make it as easy as possible for your customers to complete transactions with you. Merchant services offered by business banking institutions can help you accept credit and debit card payments, enabling smooth and secure transactions with your customers.
Getting Accounting help for your small business.
Accurate financial records and effective bookkeeping are fundamental to understanding your business's financial performance. Accounting professionals can provide invaluable assistance in the following areas:
Help with your bookkeeping and recordkeeping.
Maintaining detailed and up-to-date financial records is essential for monitoring cash flow, tracking expenses, and preparing tax returns. Accounting professionals can handle these tasks efficiently, ensuring compliance and freeing up your time.
Financial analysis by a professional to help you forecast.
By analyzing your financial statements, accounting professionals can identify trends, potential cost savings, and areas where you can improve profitability. For example, if you're considering a new marketing strategy to expand your business, this type of analysis can help you determine what level of profitability you need to reach for the marketing costs to make sense.
Their insights can help you make informed business decisions to keep your business running smoothly and effectively.
Help with tax planning and compliance
Tax laws can be complex and ever-changing. Accounting professionals stay updated on tax regulations, helping you minimize tax liabilities, maximize deductions, and ensure compliance with reporting requirements.
Having a tax professional can also support you during an audit. Nearly 3% of small businesses that were audited between 2011 and 2019 were organized as something other than a S-corp. The IRS may be more likely to audit your small business if your business deals heavily in cash transactions, like a restaurant for example.
Additionally, they may look more critically at businesses with shared use assets like a car or portion of a home that is deducted for business use. Your tax professional should serve as an advocate to help you appropriately navigate and leverage the tax code for your small business.
Making sure your small business is protected with the right insurance.
Running a small business entails inherent risks, and protecting your assets should be a top priority. Having the right type of insurance, scaled to your needs is important in order to keep your business running when unexpected things occur.
Insurance professionals can guide you through the complexities of small business insurance policies and help you find the right coverage:
Offsetting liability risks with liability insurance
This type of insurance protects your business from legal claims related to property damage, personal injury, or negligence. It ensures that you are financially protected in case of lawsuits.
Personal liability insurance that you have on your home or auto insurance may not provide the protection you need if you are liable for actions that take place as part of your business operations.
It's important to know the difference between general liability and professional liability coverages. General liability insurance is broad coverage designed to help protect small business owners from claims and lawsuits that may arise from common risks associated with owning a business.
Professional liability insurance, also known as errors and omissions insurance, or malpractice insurance, protects your business from claims of negligence or financial harm resulting from your professional service or advice.
Depending on the type of business you provide, your policies should match up to your needs.
Protecting your small business with property insurance
Your business premises, equipment, and inventory are valuable assets that need protection against perils like fire, theft, or natural disasters. If your business is damaged during a storm and you cannot operate for a period of time, you may also see lost business earnings. Small business insurance may be able to help offset those earnings.
Workers' compensation Insurance can support your small business employees
If you have employees, workers' compensation insurance provides coverage for medical expenses and lost wages in case of work-related injuries or illnesses. It not only safeguards your employees but also protects your business from potential lawsuits.
If you have employees, nearly every state requires business owners to carry workers' compensation insurance if they have employees.
Health, disability and life insurance to help you and your employees
Personal insurance policies are essential for your financial well-being. And your small business can help you acquire different insurance plans that can yield tax benefits that traditional consumers may not have access to. Premiums paid for employer sponsored coverages like health insurance, disability insurance and some life insurance plans may be tax deductible as a business expense.
As a small business owner, health insurance can also play an important role in your company's growth. If you are a sole-proprietor or one person shop, getting health insurance for you and your family can be as easy as enrolling in a plan from a private provider or finding a plan through the federal marketplace.
If you have employees, offering benefits can help attract and retain talent. You would want to work in tandem with your tax and insurance professionals to create a benefits plan that may help reduce tax liabilities to your business and provide support to your employees.
Life insurance may also be a viable tool for business continuation, especially if you have a partnership arrangement with another owner or family member. These types of plans may warrant finding a reputable financial planner or legal advisor to support your overall business continuation or succession planning.
Choosing your legal professionals.
Navigating the legal aspects of running a business requires expertise in various areas. Legal professionals can assist you with:
How your business is formed is important.
When starting your business, legal professionals can guide you in selecting the appropriate legal structure (sole proprietorship, partnership, LLC, etc.) and ensure compliance with registration and licensing requirements.
Help with making contracts and agreements.
Whether it's drafting contracts with suppliers, service providers, or clients, legal professionals can help you create legally binding agreements that protect your interests and minimize potential disputes.
Making sure your small business is following employment laws.As your business grows and you hire employees, legal professionals can ensure compliance with employment laws, draft employee contracts, and address issues related to discrimination, harassment, or wrongful termination.
In the dynamic landscape of small business ownership, it's essential to recognize the value of professionals specializing in banking, accounting, insurance, and legal services.
Help with ensuring your business continues after you.
Your small business is uniquely tied to you. Whether you retire or unexpectedly get sick or pass away, the risk of your business failing increases without putting a succession plan in place. About 20% of businesses close when their owner retires, and only one third of businesses transition to the next family generation. Work with your legal partners and financial advisors to develop plans to help ensure your hard work and business thrive beyond you.
Get your team in place
Partnering with these experts can alleviate the burden of managing complex tasks, provide insights for informed decision-making, and protect your business from potential risks. By seeking their assistance, you can focus on what you do best - growing your business and serving your customers.
Remember, a strong financial foundation, adequate protection against risks, accurate financial records, and legal compliance are all crucial ingredients for building a successful small business.
Let us help protect what you've worked hard for.
Protect your small business.