It is very easy to get engrossed in the day to day running of your business and forget about personal financial planning. Most business owners don’t have the time to think about these things. Owning a business involves juggling so many moving parts that it’s easy just to let the financial affairs slide. We’re here for busy professionals and executives to help you manage your financial affairs efficiently as you focus on your career. At Rockwell Financial Management we want to make this aspect of your business as simple to understand as possible.
Remember, early financial decisions and career paths can have a significant impact on your finances. So it’s important to plan ahead to ensure your career today can help you plan for a better future!
At Rockwell we like to start with the ‘twin pronged approach’. Dealing first with the owner themselves. Here we discuss efficient tax planning, which surprisingly isn’t at the forefront of all business owners minds. Understanding the right legal structure for the business is extremely important for tax planning – (eg. a limited company, partnership or sole-trader). This will therefore determine how the business profits are taxed.
The 3 P’s of Wealth Extraction
Following on from this it is crucial to understand how to extract wealth from your business. At Rockwell we like to call these the 3 p’s of wealth extraction, and they are the following: Pay, Profit and Pension.
The most straightforward of the three is pay. Simply put, this is the money you take as a wage.
Profit is a thing that every business declares, but very few actually understand. What is the actual value of this profit to the business owner? Any profits earned at the end of the year funnel back to business owners, who choose to either pocket the cash or reinvest it back into the business.
Finally, we have pension. Of course, we are experts of all things pension-related. It is important to remember, you will not be running this business for your whole life so it is vital you have a plan in place for when you eventually retire. This includes having a plan ready for the time when you no longer can or wish to work, and/or the business cannot fully provide for you financial needs. Working with Rockwell will allow us to show you different ideas or particular schemes that are available to you as a business owner. Most of which you probably are not aware of. These can enhance your own personal wealth, and make it a little easier to justify working 120 hours a week you are probably working as a business owner.
Not only is a pension a valuable consideration for you, but it is also important to your team, by way of employee benefits. In today’s competitive hiring landscape with employees expecting flexibility and additional support, employee benefits not only help attract the right team, but retain that talent. All in all, you want your staff to work efficiently for you, so it’s important you take good care of them
Additional investment in employee benefits is often only a fraction of the hidden costs of staff turnover.
At Rockwell, We’re here for business owners small and large, entrepreneurs and family businesses. We want to help you reap the rewards of your business success and translate into personal financial success whatever stage of life you or your business is at.
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