Why Business Owners Need to Keep Up With the News
Audio version available here (1 min. 55 sec.)
If you aren’t keeping up with the latest business and tax news, you could end up left behind other businesses. Here’s why.
1. Regulatory and Legal Compliance
Business laws and regulations won’t stay the same forever, especially in today’s economic and political climate. Failing to stay informed about recent and upcoming changes can put your business in a precarious position. Examples include Beneficial Ownership Information, which all business owners must comply with starting this year. If you do not file your BOI report soon, you are risking thousands of dollars in penalties. Read more about this here.
2. Market Trends and Opportunities
In order to stay relevant with your customer base, you need to be informed on the latest trends for your industry and the economy. Recent economic scares could change how your customers decide to spend their money. You need to be ready for shifts in the economy related to inflation, interest rates, and consumer spending.
3. Crisis Management and Risk Mitigation
Disasters like extreme weather and IT outages are becoming much more common. While these events might not be preventable, you can prepare your business to endure them successfully. Keep an eye out on disasters near your place of business and tech news for products and software that are essential for your operations. For further advice on developing crisis plans, watch our recent video.
4. Competitive Advantage
Beating out your competitors doesn’t just involve analyzing current trends. You have to innovate your product or service offerings. This can only be done if you are already informed on your industry’s latest developments. This can apply to many different sectors, but AI is currently relevant to pretty much all business. However, AI develops every day, so if you only check in on tech news once every six months, you could already be behind your competitors.
5. Policy and Political Environment
You should always be adjusting your business plan for changes occurring in the US and worldwide political sphere. For instance, when the American Families and Workers Act was passed by the House earlier this year, it would have been smart to plan new investment opportunities with money that could be saved from the act’s provisions. However, now that the Senate has failed to pass it, you should also have a plan for higher tax liabilities, such as engaging in proactive tax planning.
In order to stay informed on relevant factors to consider for your business, check in on the XQ CPA blog for daily updates on the latest and greatest tax tips and business news.
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Want to pay less taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
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