 As a savvy business owner, navigating the complexities of financial planning and strategic decision-making is key to ensuring the longevity and success of your enterprise. One invaluable tool that often gets overlooked is a comprehensive business valuation.
At Cornbelt Financial, we understand the importance of empowering business owners with the insights a business valuation can provide. We leverage cutting-edge technology to make business valuations more accessible, cost-effective, and efficient. With over 200 million businesses worldwide and 40 million business owners expected to sell within the next decade, now is the time to take charge of your financial future. Here are the top 8 reasons why every business owner should consider getting a business valuation: 1. Retirement and Succession Planning A business valuation serves as a crucial component of retirement and succession planning. Knowing the true value of your business allows you to make informed decisions about your financial future and ensures a smooth transition when passing the torch. 2. Mergers & Acquisitions Whether you're considering acquiring another business or positioning yours for a potential merger, a business valuation provides critical insights into the fair market value, facilitating informed negotiations and strategic decision-making. 3. Sale of Your Business When the time comes to sell your business, having a recent business valuation streamlines the process, instills confidence in potential buyers, and helps ensure you receive fair market value for your hard work and dedication. 4. Seeking Investments Investors look for businesses with a clear understanding of their worth. A business valuation not only attracts potential investors but also provides a solid foundation for negotiating investment terms. 5. Buy-Sell Agreements For businesses with multiple owners, a buy-sell agreement is vital. A business valuation establishes a fair market value, providing a basis for determining buyout prices in the event of an owner's departure or retirement. 6. Key Person Insurance Identifying and insuring key individuals within your business is essential. A business valuation helps determine the financial impact of losing a key person, allowing you to tailor insurance coverage accordingly. 7. Financing and Partner Buyouts Lenders often require a business valuation when considering financing applications. Additionally, in the case of a partner buyout, a valuation establishes the basis for fair compensation, fostering a transparent and amicable process. 8. Divorce Proceedings In the unfortunate event of divorce, a business valuation ensures fair and equitable distribution of assets, safeguarding both parties' interests. The importance of a business valuation cannot be overstated, especially in a landscape where 78% of business owners expect to fund their retirement through the sale of their business. Unfortunately, many are under-insured or lack life insurance due to the perceived complexities and expenses involved in the valuation process. Don't let your business value remain a mystery, reach out to Cornbelt Financial today. Learn more about our streamlined business valuation services and take the first step toward unlocking the full potential of your business. Request a business valuation today and embark on a journey of financial empowerment. Your business deserves to be valued — and so do you.  As the upcoming tax season approaches, small business owners are gearing up to make the most of available deductions and credits. Understanding and leveraging these tax benefits can significantly impact your bottom line. Here are the top six small business tax deductions to consider for your upcoming return:
1. Section 179 & Bonus Depreciation The Section 179 deduction and Bonus Depreciation are powerful tools that allow businesses to deduct the full cost of qualifying equipment and software purchased during the tax year. This can provide immediate tax relief and incentivize investments in business assets. 2. Home Office Deduction For entrepreneurs who operate out of a home office, the Home Office Deduction can lead to substantial tax savings. The simplified method, based on square footage, streamlines the process. However, for a more accurate deduction, consider calculating the percentage of your home used for business, along with eligible expenses like mortgage interest, utilities, property taxes, and maintenance. 3. Vehicle Expense Tracking both total mileage and business mileage is crucial for claiming vehicle expenses. If the vehicle is used exclusively for business, it simplifies matters. For those wanting to claim depreciation, meticulous tracking of actual expenses, such as interest, lease payments, insurance, and maintenance, is necessary. Tools like MileIQ can help streamline mileage tracking. 4. Small Business Health Insurance Small business owners paying for their health insurance or offering health insurance to employees may qualify for the Small Business Health Insurance Deduction and in some instances a Small Business Health Care Tax Credit. This deduction and/or the credit can help alleviate the financial burden of paying for health coverage, making it a valuable incentive for businesses to prioritize employee well-being. 5. Qualified Business Income Deduction The Qualified Business Income (QBI) Deduction is designed to benefit business owners, providing a deduction of up to 20% of qualified business income. However, it's essential to note that the deduction can be phased out based on income levels and varies depending on factors like business industry, type, wages paid, and filing status. This deduction has a few methods of calculation which can create some complexities for estimating the total deduction. 6. Employee Retirement Contributions Contributions to employee retirement plans not only help secure the financial future of your team but can also result in tax benefits for your business. Additionally, for those implementing a new retirement plan, a tax credit is available to offset start-up costs. For Colorado employers, the Colorado SecureSavings program increases an employer's need for considering retirement plan options. By strategically leveraging these small business tax deductions, you can optimize your financial position and navigate tax season with confidence. If you need additional support or have questions on your small business deductions, please reach out to your Cornbelt Financial team member today! |
AuthorAdam Carr, MBA, EA Archives
November 2024
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