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SB5315| What Does it Mandate?

Captive insurers are required to register with the state of Washington and pay premium taxes on risks that are located within the state according to Senate Bill 5315, which was enacted in May 2021 and adopted throughout the year in Washington. This piece of law impacts businesses in Washington State that have employees and is directed toward captive insurance carriers.

Managing a business effectively cannot be improvised. An entrepreneur aware of this reality must put all the chances on his side to lead and develop his activity as well as possible. Whether it is accounting management, that related to human resources or to the essential commercial and communication actions of a company, there are essential basic rules. We have chosen 4 of them to help you manage your business well.

1 – The secret of well-kept accounts

The company is an economic entity whose health is mainly measured using accounting indicators. These make it possible to monitor its activity regularly and in particular to ensure that it has enough resources to continue to exist. In short, to better understand how your business works and be able to manage it effectively by knowing perfectly, for example, the cost price of your products or services, the margin generated, the possibility or not of covering your external expenses, etc.

The accounting of a company also aims, thanks to many specific forecasting tools, to anticipate possible future production or financial problems, and to identify the difficulties that the company faces in order to develop well.

The accounting of a company also aims to provide for and take charge of all the social, tax and of course accounting obligations such as, for example, the regular declaration of VAT, those necessary for the payment of other different taxes, the preparation of annual accounts, or the drafting of pay slips and declarations of social charges when the company employs employees.

A business leader is not alone in keeping his accounts as well as possible and making the most of them to ensure good management, even in small businesses. Managing your business from an accounting point of view can, for example, simply go through entries in Excel documents, especially for small businesses that are starting up. There are also many easy-to-use accounting software even for an entrepreneur completely unfamiliar with this exercise.

When business turns and the company develops, it is then preferable, and in some cases even mandatory, to have recourse to an accountant or a chartered accountant, internally or as external service providers, privileged professional partners companies.

2 – Clearly define your remuneration

For its leader, creating and developing a business has the primary objective of earning a return. The level of the latter has important consequences on the financial situation of a company.

To manage a company as well as possible, it is then necessary from the start to ensure that the remuneration released to remunerate the company director does not come to abnormally increase his expenses. It is often, in fact, by agreeing to lose a little of their previous level of income that business creators succeed in making their entrepreneurial project a reality. Sometimes the health of the company depends on it.

On the other hand, good management of one’s business also implies being aware of the cost of one’s remuneration from a fiscal and social point of view.

3 – Keep a management dashboard for the proper management of a company

A company cannot be managed on sight given the many uncertainties that surround its environment, from competition to tax and social obligations, including the management of employees, for example.

It is necessary to hold a course to be reached in terms of activity and development. To reach this milestone and manage your business accordingly, nothing beats keeping a management dashboard .

This tool allows you, on the one hand, to effectively monitor the financial situation of your company, in particular to compare your forecasts with the reality of your activity thanks to indicators which can be of an economic nature (turnover by customer, by product or services, commercial margin, costs, purchases, stocks, etc.), human, qualitative or quantitative (degree of customer satisfaction and dissatisfaction, delivery times, etc.).

Thanks to a management dashboard, you can more easily correct your activity forecast discrepancies with the current one, in order to better manage your business.

4 – Establish a commercial and communication plan

A business grows and succeeds because it sells products or services. Whatever its field of activity, contacts and links with its customers are essential. Without customers, there are no sales, and the business is sure to fail.

Managing your business well therefore also means taking a particular interest in the commercial part of its activity, as well as in its communication actions. Two aspects of the management of a company essential to its image and its visibility.

In matters, it is necessary to think carefully about the means of communication to publicize and develop your activity. Many means are available to entrepreneurs, from communication channels via the Internet and social networks to communication agencies specializing in entrepreneurship, for example.