Tax breaks extend into 2007 and beyond
Smart strategies for your tax refund
Recent scams target debit cards
Can a business grow too fast?
Welcome to the second issue of Craft, Noble and Company's e-news update. Our clients have told us they appreciate receiving tax updates, notification of filing deadlines and other informative business and tax news. So we've designed a convenient and timelier way of keeping you informed. If you would prefer to receive a print copy of each quarterly e-newsletter, please call our office to place that request.
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If you own or manage your own business, you’re probably busy monitoring operations and dealing with everyday problems. But there are a few things that you should make time to do every year. These are important for your longer-term business and personal success.
Don’t just automatically write a check to renew your insurance policies when they come due. Instead, you should sit down with your insurance agent every year. Review your business operations, focusing on any changes. Discuss types of risk that could arise. Ask about new developments in business insurance. Use your agent’s expertise to identify risk areas and suggest suitable coverage.
As you review your company’s outlay for employee wages and benefits, you may find it useful to compare your spending with national averages.
According to a recent government survey, employer costs for wages and benefits average $26.86 per hour. Wages make up 70% of that amount averaging $18.80 an hour, with benefits making up 30% or $8.06 an hour. Included in benefits were social security, Medicare, unemployment insurance, workers’ compensation, health and other kinds of insurance, vacation and sick leave, and retirement plan benefits.
For details on the survey, go to www.bls.gov/ect and search for Employer Costs for Employee Compensation.
A month or so after you’ve filed your tax return, make an appointment with your tax advisor. Go over your return together and identify opportunities for tax savings. Question everything, starting with whether you’re using the right form of business entity. Ask about recent changes in the tax code and how they might benefit your business. Craft, Noble & Company offers solid business tax strategy planning.
Craft, Noble & Company can help you review your succession planning annually. You should have a specific plan for each key manager position, including yourself. Be prepared for a short-term absence or a permanent vacancy. Your plan might mean promoting from within or recruiting externally. An up-to-date plan can be invaluable if you have an unexpected vacancy.
Annually, you should go over your cash balances and banking relationships with your controller or CFO. Then both of you should meet with your banker. Ask about new products or services that could help your company. Address any service concerns or problems you might have had. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.
If you’re a business owner, your company is likely to be a significant part of your estate. A good estate plan is essential if you hope to pass your business on to your heirs. But your company, your personal circumstances, and the tax laws are continually changing. You should take time each year to make sure your plans are current.
Craft, Noble & Company can assist you with the reviews and planning necessary to ensure your business’s long-term success. Give our office a call.
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