How Financial Planners Can Help Small Business Owners?
Small company entrepreneurs have unique financial prospects and demands. They must be knowledgeable about specific tax advantages and obligations, cash flow studies, managing business credit and debt, succession planning, and insurance requirements, among other things.
When you are already occupied with running the day-to-day operations of your business, it can be challenging to find the time and energy to conduct independent research and reach conclusions regarding these financial matters.
Working with a CERTIFIED FINANCIAL PLANNER™ professional can allow you to focus on your small business needs, while your trusted professional works for you to help you reach your financial goals. CFP® professionals are trained on many key financial topics that impact your personal success, business success and overall financial success.
Here are four examples of how your small business can benefit from working with a financial planner.
1. Protect yourself and your business. Financial risks multiply when you become a business owner. Operations could be interrupted because of a disaster, a key person on your team dies or becomes disabled, or property is lost. You could also face costly legal liabilities due to negligence or defective products. CFP® professionals can provide guidance on how to structure your business to mitigate some of these risks, as well as advice on specialized insurance coverage that provides extra protection.
2. Create a tax plan that maximizes cash flow and minimizes your tax bill. CFP® professionals are trained and experienced in the nuances of tax law. They can help you take advantage of business structure, expense categories and tax credits to reduce your overall income tax.
3. Establish a succession plan to guide the future sale or transfer of your business to the next generation of management. A CFP® professional can help you develop a strategic plan that covers the mechanics of an ownership change — such as company valuation, tax implications and insurance issues — and supports the transition’s long-term success.
4. Achieve your retirement goals. A CFP® professional can help you determine which qualified or nonqualified retirement planning strategy best fits your needs and long-term goals. They can also help you confirm that your revenues and expenses are correctly recorded and benchmarked in accordance with the retirement plan you choose.
Find a CFP® professional near you at LetsMakeAPlan.org. You can use the Small Business Planning and Business Succession Planning filters to locate professionals who offer planning services in these areas.
A sound financial plan, developed with professional expertise, will help you lay the path to a successful future for you and your small business.