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This is the time to review business progress

| May 26, 2016 | Business Formation & Planning |

North Carolina business owners often use the time after tax season to reflect on how they can improve their business and their numbers for the next year. This is an optimal time to implement changes so that the effects can be realized on the next tax filing.

One of the steps that individuals make when establishing a business is creating a business plan. This business plan details the type of business that the owners want to create and the steps to get there. Reviewing the plan periodically can help owners evaluate their progress. Additionally, they may wish to update the business plan to reflect changes or the advances that they have already made. Having such a plan in place can help business owners determine how to best prioritize their time and resources.

Another aspect of successful ownership of a business is to keep a positive cash flow. Business owners can check their cash flow on a regular basis to ensure that enough liquid cash is available to meet obligations and to project future liabilities. Companies have a number of options to help them in times of a financial crunch, including a business line of credit or short-term loan. Small businesses may also want to evaluate their tax situation. If they have not already done so, they may wish to set up a separate bank account to keep their estimated taxes in anticipation of making quarterly payments.

Business owners may also want to use this time period to review their tax and financial information with their attorney. There may be some strategies that can be implemented to reduce the burden in the future.

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