Navigating uncertainty and boosting resiliency: Four practical strategies to enhance your small business’s back office

In Baker Tilly Advantage’s Sept. 24 roundtable webinar “Building your safety net: Actionable steps to enhance and protect the value of your small business," our panelists discussed various challenges and opportunities small businesses and organizations are currently facing, along with suggestions on how to adapt and thrive in the evolving business landscape.

As you begin to navigate year-end planning, below are key considerations in four areas that your small business or organization should take into consideration, including evaluating entity structure and proactive planning, navigating regulatory complexity, optimizing technology and AI tools, as well as mitigating operational costs and outsourcing.

Evaluating entity structure and proactive planning

The formal structure of your business is foundational for its long-term success. The structure influences tax outcomes, HR and payroll policies, and the overall rights and responsibilities of the owner and the organization. Small business owners and small organization leaders can be unaware that as your business grows and changes, the formal structure can be changed and should be adjusted to best fit the needs of the organization. There is no one-size-fits-all solution — the structure should depend on the business’s goals, industry, ownership and future.

“Is it worth exploring alternatives?” Baker Tilly tax principal Chase Murphy asked during the discussion. There could be benefits your business is missing by keeping the structure you currently have if it no longer quite fits or potential downfalls that could be mitigated or avoided through adjusting your structure. Todd Bernhardt, Baker Tilly managing principal, adds, “Just because you set something up at one point in your process doesn’t mean that’s the best avenue for the future.” It could be beneficial to regularly discuss with a qualified professional if any adjustment should be made to your overall business structure for the benefit of the business or organization and its future strategy.

Additionally, small businesses and organizations should evaluate and plan for their strategic, long-term goals. Planning is often focused on the relatively short term, but there are benefits to longer term planning, including succession and exit planning. According to Baker Tilly Wealth Management executive managing director Kelly Baumbach, most businesses experience key changes due to one of the “Five Ds” — death, divorce, disability, disagreement or distress. “The same way you have a business plan, having a potential exit plan is just as important. Even if it sits on the shelf, it’s important to think about that in advance,” Baumbach added.