There is only one entity that can shut your business down, put a lock on your door, and make you regret ever getting that business license, and that is the Internal Revenue Service — the IRS. (Don’t you love how they call it a ‘service?’) That being the case, it makes sense to make your business bulletproof — in other words, making sure your business is 100% compliant with IRS regulations from the first day of operations. Even if you’ve been in business for a while and are already a good-sized company, we’ve come across many situations where internal systems need to be cleaned up, income and expenses need to be optimized as well as appropriately categorized to be fully in line with IRS guidance. No matter what your situation, it’s worth looking at, right?
Of course, every business is unique, with a variety of reporting requirements, but there are aspects common to all businesses where we can help in coordination with your CPA:
- Do a thorough assessment of the particular requirements that might be unique to your business. Take the time to become familiar with them, so that you can do Step 2.
- Develop a ‘liability mindset.’ Find potential traps before they get sprung.
- Do not co-mingle personal and business funds.
- Develop a healthy balance sheet, making sure your liabilities are less than your business’ assets. This way, your company appears healthy, and able to make all payments on its liabilities. This is also looks good if the business wants to borrow money from a bank, as it shows after everything is paid there is an excess of money available.
Also, it makes sense to talk with an expert in tax strategy, someone who can help you plan and set up ways to minimize your taxes, and maximize your profit potential, all while keeping your business squeaky clean and above board. That’s bulletproof!
