A CPA, Banker, Attorney and Surety Advisor walk into a bar – what do they say?
While this may sound like a classic beginning to a joke, it certainly is not! Teamwork is not only important for basketball squads during March Madness, it is very helpful for your team of trusted advisors to work together for the benefit of your company.
Your CPA will help your company present its financial information and prepare your tax filings. They will also offer advice on ways to minimize your tax expense; which is a great idea! However, please keep your banker and surety advisor involved in the planning process so you do not limit your ability to obtain bank and surety credit in the future with your tax avoidance strategy today. There needs to be a balance between tax avoidance and showing a profit to meet both your tax expense reduction goals and potential growth goals that need to be supported with bank and surety credit. Teamwork!
Let’s not leave your attorney off the team. You can manage many of your risks by financing it through the purchase of insurance products. I even know a guy who can help put insurance in place for your business (hint: me). Sometimes the risks your business faces can also be handled in other ways. For example; working with your attorney and surety advisor to review the contracts you use for you subcontractors to make sure the risk that should be taken on by your subs is properly transferred via contract. When not done properly, you are exposing your company to unnecessary risks and potentially limiting insurance coverage available to your subs to pay claims.