Advice to all business owners
My advice to all business owners is:
Don’t wait! Know your options and make appropriate adjustments as soon as you understand your options.
Be pro-active and consider both short term and long-range strategies. The savvy entrepreneur will make changes in internal policies NOW rather than wait until year end 2018 when the options may be limited.
I advise all small business owners to address how the new tax policies will affect them both as business entities, as employers and as consumers. Your first action should be to contact your accountant or financial advisor to determine how to handle year end reporting for 2017 and 2018.
Seek counsel from a qualified professional. These professionals also have a learning curve, but make certain you are on the top of their list of clients.
Management should evaluate future growth opportunities and risks
Management should evaluate future growth opportunities and risks and understand how the new tax policies will impact their business. Internal policy changes may be required such as broadening the customer base, – creating a stronger on-line presence – or perhaps seeking working capital to provide capital for expansion.
Revised cash flow projections that include pre-tax net income and after tax net income for 2018 should be prepared. Management can use this period of confusion as an opportunity to assure employees that they are concerned with the economic benefits to be derived by all parties.
These uncertainties are an opportunity to create a stronger team.
Editor’s note: Each business needs to be examined individuallly and in many markets local and state taxes can be a major issue. Make an appointment and sit down with your tax professional to guide you through this new tax law.