What is Financial Planning for Business Owners and Professionals?
Saskatchewan has the highest rate of small business ownership in Canada, with 129 small businesses per 1000 people as of 2016. In the same year, businesses with fewer than 50 employees contributed 31% of the province’s total economic output, helping to create jobs, grow the economy and attract investment from around the world.
Saskatchewan’s small business owners face many risks in daily operations and long-term planning that can be mitigated with an effective financial plan. Mavi Wealth Management can assist with:
Business Tax Planning That Works
Owning your own business or independently practicing your profession poses significant challenges when it comes to tax planning. As a sole proprietor in Canada, you’ll be responsible for determining your own tax liability each year and saving money throughout the year to remit to the government at tax time. You’re also required to contribute to the Canada Pension Plan (CPP) an amount proportional to your total income. Once you start making over $30,000 per year, you may be required to register your business, obtain an HST number and begin collecting HST on behalf of the government.
As your business increases in size and revenue, you may consider incorporating which can get you access to better tax rates and new ways of reducing your tax burden. We help small business owners and self-employed professionals find answers to their most common tax planning questions, including:
Boost Worker Retention with Employee Benefits
Small businesses face significant up-front costs when it comes to attracting and retaining talent. Industry figures suggest that staffing an entry-level service job costs the average company $1,000, while staffing a job in a professional setting can cost up to $5,000.
To mitigate the cost of hiring new staff, more organizations are beginning to focus on employee satisfaction and retention as key metrics. Taking care of your employees with perks like group retirement plans, company pensions and health benefits can help reduce employee turnover.
Mavi Wealth Management offers competitive group retirement options that can help you attract and retain better talent in a competitive hiring marketplace.
Cash Flow Chaos? Disordered Debit Accounts? We Can Help
Being a recognized and qualified professional in your field doesn’t always translate to business success. More than 80% of small businesses fail within the first year, forcing their owners to lay off workers, sell capital equipment, terminate contracts, back out of leases and sometimes even declare bankruptcy.
When we look at the primary risk factors for business failure, some of the main ones are closely tied to financial planning:
Is your business suffering from a lack of financial organization? We can review your business financials to help you improve cash flow, meet your fiscal obligations on time and free up more cash for growth and investment.
Your Business, Your Legacy
A family business is a part of your estate and transferring that source of wealth to the next generation requires careful planning and specialized knowledge. When it comes to estate planning for business owners, emotional considerations and financial considerations often bear equal weight.
You may want to sell your business and pass down the proceeds as inheritance – but what if one of your children wants to take over the business and keep it in the family? You may want to pass the business on to your children – but what if nobody wants to run it? What if some want to run it and others would prefer it sold?
Coming to a solution ahead of time is the best way to ensure that your business is managed according to your wishes once you’re gone, and to increase the amount of wealth you can transfer to beneficiaries while lowering your tax burden.
Let us show you how we can mitigate business risks with an effective financial plan. Together, we can:
Financial planning for businesses and professionals requires an in-depth look at both your personal and business financial situation to find the best opportunities for strategic investment, resource use optimization, tax reduction and risk mitigation.
Once we learn more about your business, we can recommend strategies and best practices for financial success, both for your business and for you personally.
We create a complete financial plan that covers every critical aspect of your personal and business needs.