Broker Check
5 Areas a Holistic Financial Advisor Can Help You Reach Your Business Goals

5 Areas a Holistic Financial Advisor Can Help You Reach Your Business Goals

August 22, 2022
Share |

If you own a business, then you know your personal financial picture is closely related to your professional success. Whether you are a small or large business owner – it’s essential to collaborate with a holistic financial advisor who can provide knowledgeable expertise and resources outside your comfort level so you can focus on what you do best. A holistic financial advisor not only uses investment, insurance, and estate planning strategies but also approaches your financial plan from a tax-smart perspective that can help to save you money and keep more of what you earn invested in your business.

At Wehring Wealth Management, we offer services to help you start, grow, buy, or sell your business. We have first-hand experience running and selling successful businesses and can provide you with the tools and knowledge you need to do the same.

Risk Management

If you have yet to develop a retirement plan for your business, or if you are not sure your chosen plan is the right one, you are most likely missing tax-saving opportunities. You must focus on your own retirement savings but offering retirement benefits to your employees has been a proven retention and recruiting strategy while simultaneously providing tax advantages and other incentives as a bonus to you as the business owner.

Our team can design a retirement plan for your business, fulfill fiduciary services to mitigate any risk you might ensue, and help select and monitor the performance of your benefits provider. When setting up these plans for yourself and your employees, there are numerous misconceptions about the time, costs, monitoring, and reporting. With our help, we can advise you to invest now for financial security when you and your employees are ready for retirement.

Managing Assets

Over time as your sales and profits grow in your business, you need a knowledgeable financial partner to help research investments and advise you on allocating your financial assets. Our team can work to understand your company and what your goals are for the future of your business and help distribute the necessary resources to sustain growth.

Each business is unique, so a customized business plan that includes an investment strategy and consulting on operational support could be advantageous. For example, imagine your business has peak months throughout the year where income and cash flow are significantly higher than in other months. Our team can advise you on strategies to ensure you have enough savings to withstand slower seasons and have success in busier times.

Tax Planning

There’s a unique difference between tax planning and tax preparation. Tax planning is working to manage your financial situation to minimize your tax burden at the federal and state level each year and for the long term. Think about it this way: taking a big picture view of your entire financial picture as a business owner and working to ensure you pay the least amount of taxes come tax season. At Wehring Wealth Management, we have a deep bench of experience in tax planning and preparation. We can consider your business expenses, tax deduction and credit opportunities, and even employment benefit plan tax incentives.

Frequently, business owners are surprised at how many tax deductions, credits, and other incentive programs are available to help reduce their tax bill. Working with a holistic financial advisor with experience in tax planning can ensure you stay up to date on the numerous tax law changes and regulations and help you avoid unnecessary fees for accidental noncompliance. 

Buying & Selling

As a business owner, ascertaining your business's value is essential for various reasons, including business succession, estate tax estimates, or qualifying for a loan. When you started your business, you may have done so without having the intention of ever buying another company or selling. As your profits grow, you might find your business goals also change. Buy-sell agreements can protect a business and its owners from unintended ownership transfers – often allowing heirs to turn shares into cash in the case of unexpected death. 

We are equipped to consult on your business's valuation, help with buy-sell agreements, and provide referrals to attorneys to draft the appropriate contracts.

Succession & Estate Planning  

Business owners must collaborate with a financial advisor with experience in estate tax strategies and a succession structure to preserve the value of the business in the event of unforeseen circumstances. 

If you lack a clear plan to transfer assets, you can leave your heirs confused with the potential to deal with conflict. We can advise you on gifting strategies and any unique tax benefits before your passing and help you identify and keep your beneficiaries up to date. With the tax landscape subject to change next year, you should have a plan for the gift tax exemptions set to sunset in 2025, at which point the exemption drops by roughly one-half for the 2026 tax year.

Unfortunately, we cannot see into the future, but we can plan for it. There are numerous ways to unexpectedly lose a top leader in your business, like sudden death, illness, market conditions, etc. that can leave your business hurting, or worse ­– failing. It is important to outline any key leadership roles and responsibilities in your succession plan to keep the company operating. This can be the difference between whether your company stays afloat during turbulent and unforeseen circumstances or capsizes. 

If you’re a business owner needing extra financial advice or direction in the above areas, I encourage you to reach out to our team. We know firsthand how finances can feel complicated and completely overwhelming at specific points in your life. As you grow a business, prepare for retirement, or navigate significant life events, you need an experienced wealth management team on your side to be your sounding board for sound advice. https://www.wehringwealthmanagement.com/business-planning