I couldn’t be more excited for 2024. As the year draws to a close, entrepreneurs find themselves juggling a multitude of tasks, from finalizing annual reports and wrapping up client deliverables to making time for holiday luncheons, parties, and galas.
Amidst this whirlwind of activity, it's important not to overlook the essential legal and back-office matters that can significantly impact your business's success and longevity. By taking the time to review and assess these legal matters before the year ends, you can ensure that your business is well-positioned for a smooth and prosperous start to the new year.
Alright, business owners! Let's jump into the key checkpoints for your end-of-year legal and operations review:
1. Review and Update Contracts
Contracts are the backbone of every business deal and many business relationships, but here’s the deal: business evolves.
Your business in year 1 is different from your business in year 3 and different from year 5. It's essential to review and update existing contracts to ensure they continue to align with your current operations and objectives.
Pay close attention to key terms such as scope of work, payment schedules, intellectual property rights, and termination clauses. If you have any concerns or uncertainties regarding your contracts, consult with an experienced business attorney for guidance.
2. Update Company Policies
Company policies for your team and customers serve as the foundation for a harmonious work environment and positive interactions with your clients and customers.
Regularly review and update your company policies to reflect any changes in employment laws, industry standards, or your business practices. Make sure your policies are clearly communicated to your employees and that they are consistently enforced.
Make sure the policies on your website and point-of-sale are accurate. This will help you maintain a positive and productive work environment and transparency while minimizing legal risks.
3. Conduct Tax Compliance Review
Tax compliance is a critical aspect of business management, and failing to meet your tax obligations can lead to severe penalties and financial repercussions. Take a moment to assemble, scan, and upload relevant documents so that when 2024 comes you are ready.
If you work with a CPA, follow their instructions now for an easier tax season. Consider scheduling a consultation to learn how to maximize tax deductions and minimize your overall tax liability.
4. Protect Intellectual Property
Intellectual property (IP) is a valuable asset that deserves careful protection. Take steps to secure your IP rights, such as trademarks, copyrights, and patents.
Take time to inventory new IP created this year and get on the calendar to discuss protection. By protecting your IP, you can prevent unauthorized use, safeguard your competitive advantage, and make plans to monetize.
5. Data Security and Privacy
Data is the new currency, but it's also a liability if not secured. Assess your cybersecurity measures and consider meeting with a cyber security consultant to ensure you are taking the appropriate steps to protect client data. Also, a solid privacy policy can earn you trust and credibility.
6. Review Insurance Coverage
Insurance: your shield against risks and the money-saver for your business. Don't skip this crucial step in protecting what you've built. Review your existing insurance policies to ensure they provide adequate coverage for your current business needs.
Consider any gaps in your property damage, liability, cyber-attacks, and employee health insurance coverage. Consult with an insurance broker to assess your risk profile and optimize your insurance coverage.
7. Organize Business Records
Review your business records. Take a moment to sort, file, and delete the files on your desktop (anyone else’s pretty picture on their desktop completely covered with random downloads). That pile on your desk, file it away or shred. Organize your records systematically and implement a secure record-keeping system.
As you gear up to fine-tune your business for the upcoming year, remember that support is just a step away. Whether you need legal advice, guidance on compliance, or connections to reliable operational partners, we're here to assist you.
Reach out today for expert legal assistance or valuable referrals to trusted professionals in various operational aspects.
Small business success is our priority, and we're committed to helping your business thrive. Contact us now to ensure a solid foundation for the prosperous year ahead!