The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
How CEOs Protect Themselves From Financial Risk
It isn’t uncommon for entrepreneurs to tackle all of the responsibilities of owning and running a business on their own. While small business owners may want to take care of everything themselves, certain responsibilities are best left to the professionals. Business owners should consider the following four suggestions to help protect themselves and their companies from unnecessary financial risk:
Hire a Financial Advisor
Regardless of how financially savvy business owners may be, every entrepreneur stands to benefit from working with a financial advisor. Though 60% of business owners report that they have yet to work with financial advisors, the reality is that keeping a business afloat takes a village. With the financial expertise of a financial advisor, you’ll be better able to plan a more robust future for your business and safeguard against potential pitfalls.
Use Executive Income Protection
Success is never guaranteed for small businesses. Business owners must do all they can to protect themselves and their employees from life’s uncertainties. While entrepreneurs often work endlessly to achieve their goals, unexpected emergencies like sickness or accidents may prevent you from earning an income. Though this situation would typically put your employees at risk, signing up for Executive Income Protection will safeguard them in such a situation. With this type of protection, executives can guarantee that their employees will continue to receive their benefits regardless of whether you are physically able to work.
Get Small Business Insurance
In addition to protecting their businesses from emergencies and risky financial decisions, executives must be sure to have proper legal protection. With general liability insurance, business owners can rely on their insurance companies to cover the cost of lawsuits and damages made against them. Executives that are proactive about getting insurance will save hundreds of thousands of dollars that they would otherwise have to pay out-of-pocket.
Hire Professional Tax Filing Assistance
Filing taxes as a business owner isn’t as straightforward as filing taxes as an employee. While many entrepreneurs do file their own taxes, the more complex your finances are, the riskier it is to do your taxes yourself. Instead of putting yourself in a potentially dangerous financial situation, consider hiring professional tax filing assistance. This way, you’ll be able to avoid any legally questionable mistakes that may hurt your business in the long run.
Don’t let your desire to run your business by yourself put you at risk for financial ruin. Keep this information in mind as you aim to make the healthiest decisions for your business finances going forward.
About the Author
Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.