Business Planning

Getting your finances
organized

From managing cash flow to planning for retirement, organizing your financial life is key to scaling and protecting what you’ve worked hard to build. In this guide, we’ll break down actionable strategies that’ll take the guesswork out of organizing your finances—making the process far less overwhelming and far more effective.

You’ve already built the business—now it’s time to decide: are your finances running smoothly, or are they running you? Cash flow, retirement planning, and managing all the details might feel like a headache, but getting it organized now means fewer problems later. Keep your business growing and protected by taking control of the numbers before they start controlling you. 

Table of Contents
    Add a header to begin generating the table of contents
    Scroll to Top

    Laying the Groundwork for Financial Stability

    Separating Personal and Business Finances

    When you’ve been running your business for a while, the lines between personal and business finances can start to blur. While this might feel efficient, it can lead to financial confusion, inaccurate tax reporting, and missed opportunities for growth. To keep things clear, it’s essential to treat your business as its own entity, with separate bank accounts, credit cards, and financial records.

    Keeping your business finances separate not only helps with accurate financial reporting but also ensures that you’re protected in case of audits or legal action. It also simplifies tax planning and allows you to better measure your business’s financial health. Learn more about managing personal vs. business planning effectively.

    Building a Financially Sound Business

    Building a strong financial foundation isn’t just about making ends meet—it’s about creating a business that can thrive through ups and downs. Following key financial principles, such as tracking cash flow, managing debt wisely, and building an emergency fund, are critical steps in ensuring your business’s long-term success.

    Understanding the importance of forecasting and budgeting is also key. A solid budget helps you plan for future growth, while accurate forecasting allows you to anticipate challenges before they become problems. Read these 15 essential rules that every business owner should follow to build a financially resilient company.

    Maintaining Liquidity

    Liquidity is the fuel that keeps your business running. Without sufficient liquidity, you may find yourself scrambling to cover expenses during downturns or missing out on opportunities that could lead to growth. Liquidity management means having enough cash on hand—or easily accessible assets—to meet your short-term obligations and invest in long-term strategies.

    It’s important to strike a balance: too little liquidity can leave you exposed to risk, while too much liquidity can mean missed opportunities to invest in growth. Learn how to optimize liquidity management to keep your business financially agile.

    Optimizing Retirement and Employee Benefits

    Choosing the Right 401(k) for Your Business

    A 401(k) plan can be a powerful tool for both business owners and employees, but not all 401(k) plans are created equal. As a business owner, you need to consider factors like contribution matching, administrative costs, and plan flexibility when choosing the right plan for your company. A well-designed 401(k) plan not only helps employees plan for retirement but also positions your business as an attractive place to work.

    If your 401(k) plan isn’t aligned with your business’s needs or employee expectations, it might be time to reassess. Find out how to evaluate your current 401(k) and what changes could make it a better fit for your business.

    The SECURE Act and Your 401(k)

    If the cost of setting up or maintaining a 401(k) plan has been holding you back, recent changes in legislation might offer some relief. The SECURE Act offers tax incentives and other benefits to business owners who establish retirement plans, making it more affordable to offer this essential benefit to your team.

    The Act allows for new tax credits to offset plan start-up costs, helping small business owners implement retirement plans without a significant financial burden. Explore how the SECURE Act can make setting up or improving your 401(k) plan easier and more cost-effective.

    Incentive vs. Retention Plans—Which is Best?

    When it comes to keeping your best employees on board, compensation plays a major role. But which compensation strategy works best—incentive plans or retention plans? Incentive plans often tie bonuses or stock options to specific performance metrics, aligning employee goals with the company’s profitability. On the other hand, retention plans are designed to reward employees for staying with the company long-term, often through deferred compensation or other loyalty-based rewards.

    Deciding which plan—or a combination of both—is right for your business depends on your goals and the needs of your employees. Learn how to weigh the pros and cons of each approach and implement the plan that works best for your business.

    Strategic Tax Planning

    Lowering Your Tax Burden

    Tax season doesn’t have to be a source of stress. By proactively managing your tax obligations, you can significantly reduce your tax liabilities while ensuring your business stays compliant. From leveraging deductions and credits to optimizing your tax strategy, there are several ways to keep more of your profits.

    Every dollar you save on taxes is another dollar you can reinvest into growing your business. Discover three proven strategies to lower your income tax burden and make your business more efficient.

    Estate Tax Planning

    With the estate tax exemption set to sunset after 2025, it’s more important than ever to plan for how these changes could affect you and your business. Estate tax planning helps ensure that when you transfer wealth—whether through business succession or personal inheritance—you don’t leave your heirs or business partners with unnecessary tax liabilities.

    Understanding the complexities of estate tax law is essential for anyone looking to protect their business legacy. Find out how the upcoming changes in estate tax law might impact your financial planning and what you can do to prepare.

    Aligning Tax Strategy with Business Growth

    A smart tax strategy is one that evolves with your business. As your company grows, your tax obligations will change, and your tax strategy needs to adapt to reflect that growth. By aligning your tax planning with your overall business growth strategy, you can minimize liabilities and maximize your business’s profitability.

    The key is to ensure that your tax planning isn’t happening in a vacuum. It should be integrated into every aspect of your business, from daily operations to long-term growth initiatives. Here’s how you can align your tax strategy with your business goals to make the most of your financial planning.

    Employee Retention & Compensation Strategies

    Aligning Employee Success with Business Profitability

    Your employees are more likely to stay with your business if their success is tied directly to the company’s success. Aligning employee compensation with your business’s profitability can create a culture of ownership and accountability, ensuring that everyone is working toward the same goals.

    Compensation plans that include profit-sharing, bonuses tied to company performance, or even equity stakes can motivate employees to contribute to the company’s long-term growth. Learn how to design a compensation plan that keeps your top talent invested in your business’s success.

    Is an ESOP Right for Your Business?

    An Employee Stock Ownership Plan (ESOP) gives employees a financial stake in the company, helping to align their goals with the long-term health of the business. ESOPs can be a powerful retention tool, as they offer employees a sense of ownership and loyalty to the business.

    However, implementing an ESOP isn’t right for every business. It’s important to understand both the benefits and the challenges before committing to this approach. Find out whether an ESOP is a good fit for your business and how it can help you retain your key employees.

    Choosing Between Retention and Incentive Plans

    Deciding between retention and incentive plans—or using a combination of both—requires a deep understanding of your business’s goals and your employees’ motivations. Retention plans reward long-term loyalty, while incentive plans drive performance through short-term goals.

    Understanding which strategy is best for your business will depend on factors like company culture, financial goals, and employee expectations. Learn more about the benefits of retention and incentive plans and how to choose the best approach for your business.

    Safeguarding Your Business Against Risks

    Disability Buyout Insurance

    A sudden leadership change can throw your business into turmoil, especially if it happens unexpectedly. Disability buyout insurance helps protect your company in case a key partner or owner becomes unable to work. This policy ensures that you’ll have the financial resources to buy out their share of the business, maintaining continuity without causing financial strain.

    Disability buyout insurance is an essential safeguard for businesses that rely heavily on a few key individuals. By having this policy in place, you can protect your business from potential disruptions and keep operations running smoothly. Learn how disability buyout insurance can protect your business from unexpected events and ensure continuity when it’s needed most.

    The Role of Assets in Business Growth

    Not all assets contribute equally to your business’s growth. While some assets may serve as a buffer during tough times, others might be tying up valuable resources that could be better used elsewhere. Understanding which assets support your business growth—and which may be hindering it—is crucial to maintaining financial agility.

    For example, real estate or equipment might seem like strong assets, but if they’re underutilized, they could be dragging down your liquidity. On the flip side, financial assets that can be easily liquidated provide flexibility and security in uncertain times. Discover which assets are worth holding onto and which ones might be better off liquidated to enhance your company’s overall growth strategy.