Financial Wellness Checklist for Small Business Owners

Financial Wellness Checklist for Small Business Owners

January 23, 2024

Financial wellness is easier to work toward when a business owner understands their economic outlook and has set financial goals to take them through the next 5 to 10 years.2 Striving toward financial wellness is vital for any small business owner. When your finances are in a good place, you are able to focus on other important aspects of your business, such as business development and growth. So, if you are ready to take charge of your financial wellness, there are a few things to add to your financial wellness checklist.

1. Check Your Insurance Policies

One of the items that should be on the top of your checklist is your insurance policies. Unfortunately, insurance is one of those items that you don't always consider until it is too late. Make a point to review your policies, making sure that you have the policies you will need in place and the proper coverages.1

2. Look for Areas to Cut Back

Even if your company is doing well and you are not currently feeling any financial strain, it is still a good idea to check your expenses and see where you are able to cut back or save some money. Often, you will find that you have expenses you don't really need, or there are options out there to consolidate and reduce these costs.2

3. Give Your P&L the Once-Over

It is also a good practice to look over your profits and losses every quarter. By staying on top of your P&L, you will be able to budget your money and plan for future expenses. You will also be able to see at a glance if some of your expenses are getting out of hand.1

4. Consider Possible Tax Advantages

You always want to look at potential tax advantages for the year. It is important to look for these early so you are not scrambling at the last minute before the close of the year. If you are unsure what tax advantages you are able to utilize, contact your tax preparer for their insights.2

5. Make a Plan for Your Future Investments

Sooner or later, you are going to need to invest in your company in some form or another. This may be an investment in operations expenses, in new machinery, or in a new marketing plan. Sit down once a year, consider the direction you want your business to move in, and make a list of the investments you will need to work toward those goals. Once you know them, make a plan on where the money for the investment will come from.1

6. Look at Your Cash Flow Trends

Take a look at your cash flow for the past year and look for areas where your cash flow was not where you needed it to be. Once you have identified the patterns and when they occur, develop a plan to avoid the same situation in the upcoming year.1

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

 All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

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1 14 Essential Activities For Every Small-Business Owner’s Q4 Financial Checklist, Forbes,

2 Financial Wellness for Your Small Business: What It Is and How to Create It, American Express,