Small Businesses & Insurance

There are a million types of insurance out there. From medical to auto to renter’s, it seems like we are always shopping for insurance. Just like any other important insurance, business insurance is crucial to take care of your business.

Why insurance is important & Tips to pick the right insurance

Business insurance is extremely important because it protects the business from having to pay out-of-pocket for expensive damages via property damage or legal claims. Most insurance is not required for a business. Although, if you are of a certain size, you may have to pay different kinds of insurance. For example, employers with fifty or more employees are required to provide health insurance to their employees. Despite the fact that most states don’t require insurance, if you own or rent a workspace, there is a good chance you’ll need a business owner’s policy (BOP). BOP usually combines general liability insurance and commercial property insurance. Typically, these policies are flexible and you may add more types of insurance atop of this to get the coverage you desire. BOP is not the only type of insurance out there though, there are many different types of insurance out there for businesses. Finding the right insurance may take a lot of research but it will be well worth it!

When picking insurance out for the first time, it can seem really overwhelming. Remember to really take your time and now what your policies will cover. Although BOP may be a good general blanket for insurance, it has many of its own exceptions and additions you may have to make to cover your business perfectly for you. Furthermore, there may just be other types of coverages that work better for you. Consider a few different things when picking out insurance. For starters, different business industries require specific coverages- make sure you’re finding something that matches the type of work you do. Next, think about where your physical property is located and how much property and other equipment you have. Finally, assess your intellectual property and amount/type of employees and customers. After you’ve determined what you need, make sure you know the risks of the coverage you’ve decided on. Compare quotes to see what will give you the most for your money and the best protection. Last but definitely not least, find a good agent and review your policy regularly!

Working with Insurance Agents – Country Financial with Gabrielle Zenner

Finding a good insurance agent is vital as they are also responsible for helping to protect your business. Country Financial is a boutique, regional insurance carrier that writes coverage that serves homeowners, farmers/ranchers, and small business owners. Their vision is to enrich the lives in the communities they serve. Gabrielle Zenner at Country Financial loves putting together thoughtful recommendations for clients to meet their scope of needs which is essential in having a good insurance agent. She says that her business can sometimes be challenging during inflationary periods in the market because budgets could be made to cost a certain amount but end up being a higher total. Although they experience rates like everyone, their business has made changes to make the loss ratios reduced and continue to give clients the best coverage they can. The number one advice for clients is, “If you want a total loss claim to go smoothly, make a video walkthrough of your home belongings showing manufacturer’s labels every year. You never know exactly what you have when there is a fire, but a video record makes it easy for an adjuster to cut the personal property check.” says Gabrielle Zenner. Another important thing she mentions for clients is to update their insurance policies- especially after renovations. If you don’t update your value on your insurance, you would be getting the old version of something rather than your new, renovated one. Don’t leave your policy the same as the first time you bought it years ago! These are all extremely valuable tips and a good reason to have an insurance agent like this!

Overall Insurance Importance

Even though there are many different types of insurance and most aren’t required by law, it is still very important to insure your business. Having the right agent also plays a vital role in helping you find the right insurance and creating security in your business.

Benefits of having a CPA

As January approaches, end of the year financials are rolling out and tax season is closer than ever. This is the time of year accountants and CPAs are talked about again and again. CPAs can be very rumernative to your business and help with long-term success.

What is a CPA?

A CPA is Certified Public Accountant. All CPAs are accountants but not all accountants are CPAs. This is because becoming a CPA requires a license. (This license is achieved with a bachelor’s degree with a concentration in accounting. Other specifics change state to state.) About 50% of accountants are CPAs. Having a CPA alongside an accountant is beneficial because they can work together to help with monthly reporting and of year taxes to get the best financial influence for your business

Why have a CPA?

CPAs are typically more expensive than accountants so many businesses often require regular accountants help on a more regular basis. Accountants & CPAs can do a lot of similar things but there are some things that only CPAs are allowed to do. Only CPAs can prepare audited financials and represent clients in front of the IRS. Also, only CPAs can file reports with the Securities and Exchange Committee (SEC). Regular accountants often have more of a direct influence in a business as they typically monitor the client’s company reporting and help companies see the bigger picture through their financials. They do this (often with the help of bookkeepers) by coding and recording transactions as well as managing accounts payable/receivable. Although CPAs have this capability as well, CPAs are often hired to work with and handle yearly taxes since they are better tax experts.

Working with a CPA – Brandon Johnson, CPA

Having a consistent and personal CPA can be extremely beneficial to your business long term. Brandon Johnson, CPA is a CPA that does tax preparation and tax reduction planning for small business owners and self-employed individuals. It’s important to find the right accountant & CPA for you. Different accountants/firms specialize in different areas and price does not equate to best fit. Having the wrong services can cost you; often in the form of overpaying taxes. Furthermore, waiting until the end of the year is not useful in reducing your tax bill. Planning ahead is vital to making a real impact in your finances. “I am focused on small business owners and position myself to be proactive in my services instead of reactive. This is done through tax planning services where we project how much tax the business owner is expected to owe at the end of the year, and we brainstorm tax strategies to implement in order to reduce that tax. These services also include ongoing support through the year, a QuickBooks reviews, and help dealing with the IRS.” says Brandon Johnson. Brandon loves that he gets to advise and build relationships with clients instead of simply just crunching numbers. Knowing he can find different strategies for reducing taxes and bringing in more cash flows for his clients gives him a sense of purpose because this allows clients to stay in business & take care of themselves and their family. Having a CPA like this is valuable to the longevity of your business.

Significance of CPAs

CPAs play an important role in the world of business. They have an immense amount of knowledge and benefits that other financial advisors can’t help with. As the next year begins, remember to keep in mind the importance of a CPA!