With a new year around the corner, business owners are focused on planning. Facing political, economic, and global unknowns seems to have become the norm so it’s important to know where to turn your attention.

I advise clients to prioritize three critical elements of their business – strategy, budget, and taxes – which were the focus of our most recent Peer Advisory Board (PAB) meeting. I’ve shared some highlights below that can help you make the most of your planning time and efforts.

STRATEGY

As you plan for the new year, take time to reflect upon what is at the foundation of your business, what motivates you to keep moving forward and succeed. Review WHY you are in business. Although this concept is not tangible, it drives everything that is. Consider and write down your thoughts and responses around the following over-arching concepts:

1. WHY you do what you do.
2. What you intend to accomplish through your business (vision).
3. What need(s) you are meeting or problems you are solving (mission).
4. How your values and culture reflect these defining principles of your business.

Once you’ve clearly stated these points, you’re ready to move forward with your strategic plan, ensuring that it’s in sync with these foundational elements of your business. I recommend that business owners address the following five categories for building your strategy:

1. Review Financial Performance and Clean up Books
2. Optimize for Taxes
3. Evaluate Business Performance and KPIs
4. Plan and Budget for the New Year
5. Take Care of People and Relationships

Addressing each of these categories involves several steps. Click here to download a year-end checklist that includes each of the steps for developing your strategy.

As you develop or update your strategic plan, take some time to plan for the unexpected and maintain flexibility – both in your written plan and your company’s realistic ability to respond to change. If you have an exit strategy, you’re ahead of the game since some of the most successful companies use it just like a strategic plan to help them guide their decisions.

BUDGET

A well-prepared budget is an essential element of business that demonstrates where you stand financially, where you need to be to meet your objectives, and identifies the gap between the two points. A data-based, dynamic, working budget can mean the difference in whether you succeed in your business, or just stay afloat and provides the following benefits:

• Financial Control and Discipline
• Informed Decision-Making
• Cash Flow Management
• Goal Setting and Performance Tracking

Begin the process by reviewing what you experienced and learned from the past year. With the benefit of hindsight, we know that circumstances and the business climate can change quickly due to external influences that are beyond our control. You should therefore have contingency plans in place, including options for pivoting. Project for the entire year but factor in the near term, maintaining flexibility to adjust as circumstances change. Click here for some additional tips on preparing your budget.

Like your business activities, your budget is dynamic. Therefore, timely, accurate, financial reporting processes are essential for ensuring and maintaining its relevance.

TAXES

These five steps are essential for year-end tax planning:

1. Maximize Business Deductions Before Year End
2. Optimize Owner Compensation and Payroll
3. Contribute to Retirement and Benefit Plans
4. Review Estimated Taxes and Tax Credits
5. Evaluate Entity Structure and Long-Term Strategy

On the minds of everyone is how Trump’s One Big Beautiful Bill will impact their business and individual taxes and tax preparation requirements. Christine A. Maher, MT, CPA, and founder of C. Adducci Maher, PC, was our PAB guest speaker and shared her tax expertise and detailed insights into this tax act. Click here to access a list of highlights from her presentation regarding changes that will affect both business and individual taxes.

In addition, review these general tax guidelines and checklists from QuickBooks to help compile information and prepare for filing. Once you have all your records and receipts, don’t go it alone! Every business owner wants to pay the minimum legal tax. Be sure to get advice from your CPA or tax specialist to ensure you don’t miss any deductions or leave out any information that could result in penalties.

I would welcome the opportunity to help you plan for the coming year, from the perspective of both a CPA and business/exit planning strategist. Contact me for a complimentary consultation.

Bob Zarlengo is a certified exit strategist and CPA. More than four decades of experience in public accounting, expertise in financial reporting, income and estate planning, and tax compliance makes him a valued and trusted advisor to his clients.