Business Finance Checkup: Is Your Company Poised for Success This Year — and Beyond?

The first quarter is a great time to take a fresh look at your operations, and your business banking team can be a valuable resource for solutions and perspective on options that deliver results. Here, we suggest four key areas all businesses should consider as the year gains momentum.

Tax Planning

• Plan for tax deadlines: Depending on your company’s structure, business tax filing deadlines are typically March 15 (for calendar-year S corporations and partnerships) or April 15 (for C corporations and sole proprietorships). Your tax advisor can suggest ways to take full advantage of deductions, credits and other tax-saving opportunities.
• Maximize cash flow and funds availability: Discuss your tax strategy with your business banking team. They can help you plan to have the funds you need to make tax payments at the right time throughout the year, from cash management strategies to credit lines for added flexibility.

Cash Flow and Profitability

• Cash flow forecasting: Update cash flow projections regularly to navigate potential revenue fluctuations or increased costs. Your business banker  can review your projections and suggest adjustments, including cash management solutions tailored to your unique situation. They can also recommend tools such as a commercial card program to enhance cash flow.
• Interest rate strategies: Plan for potential interest rate fluctuations or inflation impacts with strategies such as refinancing existing debt. You may also wish to explore options for small business or commercial loans and lines of credit.
• Emergency fund and risk management: All businesses should have a risk management plan. Business bankers can offer insights on the pros and cons of higher-earning savings vehicles like money market accounts or certificates of deposit (CDs) compared to other investments.

Logistical Updates and Improvements

• Technology investments: Assess your company’s technology tools to improve efficiency, cybersecurity and customer experience. Your business banker can suggest financing and fraud protection strategies to keep your systems up to date.
• Capital expenditure planning: Plan large purchases strategically to benefit from tax deductions and secure favorable financing, from equipment financing to commercial real estate or Small Business Administration (SBA) loans.

Workforce Needs

• Workforce investment: In times of high worker demand, workforce planning is key. To compete in a tight labor market, strategize how to manage labor costs and upskill employees.
• Retirement plan updates: Review your company’s retirement plan to ensure that this attractive employee benefit aligns with employee needs while offering potential tax advantages.

Whether you tackle everything at once or focus on one area per quarter, plan to connect with a business banker to discuss your business’s options. The result can be a stronger, more resilient business — a winning formula for success.