Commercial Banking: Checklist for the New Year

February 2, 2022

2022 brings about new banking challenges and considerations for business owners. The success of a business depends in no small part on financial management, asset distribution, and risk assessment in response to the current economic and industry landscape.

Pairing with a well-established financial institution provides business owners with a reliable roadmap toward fulfilling company growth and potential expansion. A trusted industry expert guides businesses through every step of creating a sound financial plan, accounting for several vital processes necessary to elevating profits while minimizing losses.

1. Re-Evaluate Your Cash Flow Management

Running a business requires decision-makers to have a finger on the pulse of their revenue. Financial advisors can help companies create an accurate breakdown of spending and space out cash flow across the new year. Doing so with a detailed financial checklist helps allocate suitable funds for business continuity plans.

Experienced financial institutions may offer practical suggestions to reduce the company budget where applicable. For instance, advisors may propose renting equipment rather than purchasing it or improving the company’s invoice systems.

The start of the new year might serve as a strategic time to re-evaluate supplier and vendor contracts, opting for affordable alternatives if necessary without compromising value.

2. Review Accounting Documentation

Businesses need to ensure they take a systematic approach to their accounts, enabling highly transparent presentations for easy analysis and interpretation. By partnering with a financial institution, decision-makers can access detailed account reports for auditing purposes. Essentially, institutions can provide accounting departments with updated data for efficient record-keeping.

3. Audit Your Financing

Sustainability is a core goal for all businesses, which may require financing. A trusted partner in commercial banking offers the most suitable financing options according to a business’ budget and long-term plans. Decision-makers will receive advice on interest rates and repayment periods for various financing options, along with advice on how those financing options align with their business priorities.

First Western Trust offers flexible commercial lending services tailored to specific business goals, such as mergers and acquisitions and commercial program funding.

4. Develop a Clear Financial Plan

A clear financial plan will help decision-makers run a business with minimal delays and disruptions. Essentially, a well-thought-out strategy keeps businesses focused and on track with clear organizational goals which endure despite unexpected events (e.g., the pandemic outbreak or economic downturns).

By working with an experienced financial advisor, business owners can discuss detailed and practical financial checklists and business plans across timelines (i.e., weeks, months, quarters, or years).

While there will always be an element of uncertainty with running a business, advisors can reduce the unknown by assessing organizational resources and budgets. Early financial planning with a professional can help drive sensible cash flow management throughout the business year, anticipating budgeting challenges.

5. Upgrade Your Risk Management

Running a business involves managing risks; risks which may include security and fraud issues, economic fluctuations, and operational challenges. A reliable advisor helps keep things in perspective with a financial checklist, enabling decision-makers to view the whole picture necessary for maintaining a healthy business account.

Commercial banking providers often inform businesses of the regulatory changes and compliances required for operational resilience. Through a detailed financial plan, decision-makers can identify and prioritize potential risks early and initiate mitigation strategies without delay, reducing the negative impact on businesses.

6. Set up 401(k) Plans for Employees

401(k) plans are integral employee benefits that can help improve employment appeal within a company, attracting more talent. Decision-makers may coordinate the best 401(k) contribution arrangements with a trusted financial advisor.

The practice should also apply to small companies with fewer than 100 employees, where decision-makers draft a SIMPLE 401(k) plan. A partnered financial expert will guide businesses in maintaining IRS documentation/compliances, setting up a trust for the plan assets, and other steps necessary for implementing the initiatives within a financial checklist.

7. Consider Nonprofit Banking Advantages, If Applicable

Nonprofits follow a different financial trajectory from for-profit organizations that require a specialized banking approach. Nonprofit leaders can drive the start of a productive new year by partnering with a bank that recognizes the intrinsic value and unique contributions of the nonprofit’s mission, as well as the related financial challenges.

First Western Trust empowers nonprofits with MaxGiving, a sponsorship package that enables seamless fundraising to help decision-makers receive the necessary funds to spearhead change.

Additionally, nonprofits may access specialized credit card services that enable easier monitoring of spending across employee accounts, offering real-time insights and security against unapproved purchases.

First Western Trust — A Leading Ally in Commercial Banking Needs

First Western Trust is a leading name in commercial banking services, offering comprehensive coverage for various business needs. The financial advisors at First Western Trust understand that every business has a unique set of priorities, perspectives, and positions that drive their budgets.

As such, partnering with First Western Trust enables business owners to analyze their priorities, to navigate liquidity, insurance, and yield needs according to immediate and future business goals.

By reaching out to a reliable financial expert, decision-makers can focus on the technical aspects of running a business while having peace of mind that their organizational accounts are in the trusted hands of experienced professionals.

First Western Trust offers complete services, including commercial lending, treasury management, employee benefits, retirement consulting, and health savings accounts.

Start a conversation with First Western Trust to discover customized banking solutions that optimize your business growth for 2022 and beyond.