With tax season upon us, many companies are dealing with their year-end planning issues. And how a company deals with these issues can have an impact on their surety support for the upcoming year.
In my December 2013 blog posts Surety Bonds & End of Year Considerations – Part 1 and Surety Bonds & End of Year Considerations – Part 2, we discussed in detail several year-end considerations that are vital to a company’s future surety support. Good advice from an attorney, banker or tax accountant’s perspective many not be good advice from a surety perspective. In fact, it can be detrimental – actually compromising or destroying a company’s surety capacity.
If continued or expanded surety support will be important to your company’s growth in 2016, then weighing the surety-oriented considerations discussed in my 2013 blog posts against your other year-end considerations should be part of your year-end planning. These considerations include:
- Consider upgrading your company’s year-end financial statements
- Build equity
- Do not over-emphasize tax planning
- As an owner, check your personal credit score
- Improve your company’s “working capital” position
- Improve your company’s “liquidity”
- Obtain an increase on your company’s operating line of credit
- Do not undertake ownership changes without considering the surety implications
It is not only at year-end when companies may be making decisions which will impact their financial statement. During anytime of the year when these decisions arise, companies should consider the impact of those decisions on their bonding support. Goldleaf Surety Services can provide counsel to agents and their contractors – both with year-end considerations as well as other surety considerations – needed to grow and improve the company’s surety support.