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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

September 12, 2022

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 so you can focus on what you do best, leading and operating your business. 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 DKS Financial Strategies, we offer services to help you start, grow, buy another business, 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.

Retirement Planning

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 DKS Financial Strategies, we have extensive experience in tax planning. 

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. 

Risk Management & Estate Planning  

Business owners should also collaborate with a financial advisor with experience in succession planning and estate tax strategies to preserve the value of the business in the event of unforeseen circumstances. Buy-sell agreements can protect a business and its owners from unplanned life events – allowing surviving owners to fund the purchase of the deceased owner’s share of the business, and heirs of the deceased business owner to turn shares into cash in the case of unexpected death.  Most commonly funded by life insurance, these agreements are vital to the continuity of the business.

Business owners should also have a plan in place for the transfer of business and non-business assets upon their death.  If you lack a clear plan to transfer assets, you can leave your heirs unprepared to handle the process and subject them to conflict.  We can advise you on lifetime gifting strategies and the tax impact of different transfer strategies. Bear in mind the current gift and estate tax rules are scheduled to change at the end of 2025, and you should have a plan in place that recognizes those expected changes. 

Business and Exit Strategy

Benjamin Franklin most famously said, “If you fail to plan, you plan to fail.”  This clearly applies to running your business. As experienced business owners ourselves, we can provide you guidance and perspective on your business plan, strategy, and operations.  We have particular strength in growing by way of acquisition and can also share important perspectives and advice come the time you decide to sell your business.  There are critical decisions to make that impact taxes on the sale of your business and we can help you craft and implement your investment and life plan after this important liquidity event. 

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 give you the confidence to handle life’s complexities.