Are you ready to set your family business goals in motion? An annual roundtable check-in isn’t just about reviewing numbers, it’s also an opportunity to ensure alignment between personal visions and business goals. From staying on top of tax deadlines to revisiting succession plans, this yearly practice can pave the way to a successful year. Not sure where to start? In this guide, we’ll walk you through the essential checks and balances to master tax compliance, strategic planning, and fostering healthy relationships.
Stay on Top of Tax Deadlines
Tax compliance is a cornerstone of any successful business, and family businesses are no exception. Missing quarterly tax deadlines can also lead to costly penalties that may disrupt cash flow. Additionally, as an employer, you also need to ensure that W-2 forms are submitted timeously, and submit payroll filings on time. Study our corporate tax calendar for essential deadlines to stay on track.
To streamline your annual tax planning, diarize the following quarterly tax payment dates:
- January 15, 2025: Fourth quarter 2024 estimated tax payment due.
- April 15, 2025: First quarter 2025 estimated tax payment due.
- June 16, 2025: Second quarter 2025 estimated tax payment due.
- September 15, 2025: Third quarter 2025 estimated tax payment due.
Review Estate and Succession Plans
Having an updated estate plan is an underrated advantage in family businesses. While many see it as a once-off checkbox, an annual review of your estate and succession plan is essential to safeguard your business’s legacy.
This check-in ensures that your plans reflect current circumstances for seamless leadership transitions and protect family harmony
Ask yourself:
- Are leadership roles and responsibilities still appropriate?
- Has there been a change in educational expertise that qualifies other members for key positions within the business?
- Have there been significant life events, like marriages, births, or deaths, that impacted these plans?
- Do the current strategies effectively address tax implications and ownership structures?
An updated estate plan ensures continuity and protects the shared vision across generations.
Review and Address Challenges
Family businesses often face challenges such as personal dynamics influencing decisions and blurred boundaries impacting the workplace. While these may seem minor, they can significantly harm both relationships and business performance.
To mitigate these challenges:
- Establish clear roles and responsibilities for every family member involved.
- Create a governance structure to manage conflicts and decision-making processes.
- Prioritize open and respectful communication to maintain harmony.
An annual roundtable discussion can help alleviate subtle tensions and bring covert challenges to light. Additionally, engaging an impartial business integrator to facilitate these discussions can provide unbiased perspectives and ensure constructive outcomes. This can help your business ensure success!
Set Goals for Success: Financial and Interpersonal
The start of the year is an ideal time to set clear goals for both your business’s financial performance and family dynamics. Reviewing your financial statements will set the stage to know what’s working and where you can improve.
Financial goals:
- Review and update budgets, forecasts, and cash flow strategies.
- Consider the best accounting tools and software to streamline accounting processes.
- Identify growth opportunities, whether through expansion or investments.
- Look for ways to reduce costs including saving on taxes.
Interpersonal goals:
- Schedule regular family meetings to keep communication lines open and ensure that everyone is informed.
- Plan team-building activities to strengthen relationships, promote work-life balance and facilitate healthy conflict resolution.
- Focus on balancing business responsibilities with personal well-being to avoid burnout.
At Fusion CPA, we specialize in tax and accounting services for family businesses. Our CPAs help you streamline financial processes for sustainable growth. Our business integrator services provide impartial guidance to navigate family dynamics that may hinder progress. To take your family business to the next level, schedule a Discovery Call with our team today!
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This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. We base articles on current or proposed tax rules at the time of writing and do not update older posts for tax rule changes. We expressly disclaim all liability regarding actions taken or not taken based on the contents of this blog. The same applies to the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.