How do you keep your business secure?
In the world of business, security matter. Like I always tell my clients, and this is something I do in my business, you need to be sure you are doing the right things. You need to be doing everything to minimize litigation, disputes, and decrease in revenue. Also, remove errors in your accounting, and finally don’t omit any federal, State or local tax.
Doing everything to keep your business secure is a most.
This is especially true in Coaching industry. With the growth in the industry and the increase in litigation, you have got to step up your game. After all, what is the point of working your fingers to the bone if you are going to lose it all?
There are basic things you have to continuously do to keep your business secure. In the month of December your focus should be:
You are familiar with many or all the standard contract forms. Reviewing your contract forms can help you reduce client dispute. You should work with your lawyer in identifying and redrafting your contractual terms like: warranties, disclaimers, and allocation of risk. Also, to clarify any ambiguous or inadequate language in your invoice. This will help in cutting down your risk of unpaid accounts, and refunds.
In fact, double checking your forms business terms gives you an accurate idea whether they truly reflect the agreement between you and your clients.
Furthermore, December is a good time to revisit your client retention. To remove surprises and sudden decrease in your revenue, review your client documents. Have a full list of all the contracts that will be ending and those ending in the first quarter of the coming year. Doing this gives you a vivid picture where your business stands financial.
After that, device strategy to either replace those contracts or ways to retain them. I believe a good contract is the one that makes your business secure, run smoothly, and gives you peace of mind. This is because a good contract protects and covers you from most unpleasant situations that might arise in the future.
Doing a legal audit is a great time to update your business records, registration, permits or licenses. It is a good time to reevaluate your certifications. You might want to get new ones. A legal audit is an opportunity for your lawyer to review your business compliance with state, federal and local taxes laws. You can devise ways to reduce your tax liability.
Reviewing Current employee benefits (pension plan, health insurance, disability policies vacation and sick leave) can also be included in your legal audit. You will want to utilize all the available tax deductions while you still work to accomplish your employee benefit goals.
Apart from reviewing your business records, licenses, and employee benefits you will also be reviewing your bookkeeping systems and financial records.
Financial audit also known as accounting audit is a thorough examination of your financial records. Why do you need financial audit? The reason is to have a reliable and accurate financial record. You need to correct any error before the tax month.
If you have been working with a lawyer, you should not have any problem determining your tax obligations. In addition to state taxes, your business have to pay federal and local taxes. The two most common type of taxes you will have to pay are the Income taxes and employment taxes.
Your state income tax obligations depends on the your business entity. For instance, LLCs and corporations pay taxes separately from you the owner, while as a sole proprietorship you report your personal and business income taxes together.
As a business owner you are responsible for paying federal employment taxes. In addition, you are obligated to pay state taxes if you have employees. For example, workers’ compensation insurance and unemployment insurance taxes.
Tax laws vary by state consult the General Tax Information link under your state for more information.
Give me your thoughts and let me know any other topics you would like me to discuss.