Five Forward-looking Ways to Wind Down the Year

As 2024 winds down, business owners are getting their houses in order as they prepare to greet a new year. Year-end offers an opportunity to take stock of how plans and strategies have played out. It’s also a good time to revisit any standing plans to ensure all elements remain relevant and up to date. Tommy Walke, Wealth Advisor at First Interstate Wealth Management, recommends a host of year-end check-ins to help businesses get ready for whatever lies ahead.

1. Meet with tax and financial advisors.

Before the year is out, reviewing current tax strategies and considering whether the business is on track to achieve its objectives is critical. If managing taxable income is a concern, for example, deferring income or accelerating expenses could be beneficial. While a banker or Wealth Advisor cannot provide tax advice, they can provide perspective on how different strategies might affect business finances as well as how to work with tax and legal experts to ensure elements are in place to support a selected approach.

2. Review exit or succession plans.

At some point, businesses of all sizes will experience a change in leadership, planned or not. The end of the year is a good time to consider if exit or succession plans are in place and still reflect the current reality of the business and its trajectory. A Wealth Advisor can help guide business leaders through a planning process that can help ensure a smooth transition whenever the time comes.

3. Consider charitable giving.

December can be a big month for nonprofits, as the holiday spirit — and the current tax year’s looming deadline for write-offs — often spurs a flurry of donations. While a cash contribution is a simple and popular choice, it may not be the most advantageous for tax purposes. With the help of a Wealth Advisor, business owners can explore the benefits of donating appreciated noncash assets, using a donor advised fund or contributing cash from the sale of depreciated assets, among other options. Adopting a strategic approach to giving can boost the bottom line while still making a meaningful impact.

4. Reassess retirement planning.

For workers, a sound retirement plan is a critical benefit and provides a sense of security when planning for an uncertain future. To develop a plan or evaluate an existing one, whether it’s a SEP IRA, SIMPLE IRA or 401(k), businesses can consult with a retirement plan advisor. An advisor’s expertise can help identify potential cost savings as well as shortcomings to address, ensuring a plan remains competitive and attractive to current and potential employees.

5. Prepare for the post-holiday crunch.

Depending on the industry, the holiday period could be feast or famine. If business is booming, a Wealth Advisor can provide guidance on how to manage an influx of cash and fund reserves for slower periods. And if business activity experiences a seasonal slump, it’s important to work with an advisor to plan ahead for bills that continue at their usual pace.

Businesses of all sizes and in any stage can benefit from a year-end check-in with their advisor. More information about business and wealth management services at First Interstate Wealth Management can be found at firstinterstatebank.com/business/wealth.