Navigating the Complexities of Financial Planning for Business Owners with Adam Koós

“Procrastination is a huge problem, but the bigger problem is the lack of awareness of the need for owners to start planning now, whether you're selling in three years or 13 years.” – Adam Koós 

The finer details of this episode:

• Financial strategies for clients with appreciated properties
• Challenges faced by business owners in managing real estate assets and company structures
• Tax implications of selling a business and recasting financials
• Importance of proactive financial planning and business transition for business owners

Episode resources:

• Summit Virtual CFO by Anders website: https://www.summitcpa.net/
• If you have questions or would like to be a guest on the show, email us at mcpasuccessshow@anderscpa.com
• Check out the Virtual CFO Playbook Course: https://vcfoplaybook.summitcpa.net/
• Connect with Adam here: https://www.linkedin.com/in/adamkoos/
• Check out Libertas Wealth here: http://www.LibertasWealth.com

Timestamps:

The introduction (00:00:00)

The hosts introduce the podcast and its mission, providing insights on accounting strategies and innovative tools.

Adam's career story (00:00:55)

Adam shares his unconventional career journey from pre-med to becoming a financial advisor and the founding of Libertas Wealth Management Group.

Services provided by Libertas (00:04:45)

Adam discusses Libertas' services, including financial planning, retirement planning, exit planning for business owners, and working with working professionals.

Financial strategies for clients with appreciated properties (00:07:26)

Adam explains the 1031 exchange and passive real estate investing as a solution for clients with appreciated properties who want to avoid active management and taxes.

Liquidity and risk management in passive real estate investing (00:13:51)

The discussion explores the liquidity and risk management aspects of passive real estate investing, including spreading risk by investing in multiple properties.

Impact of COVID-19 on commercial real estate (00:15:39)

Adam discusses the potential impact of COVID-19 on commercial real estate, including lease expirations and mortgage debt held at community banks.

Elevate your firm with a virtual CFO playbook (00:16:36)

An advertisement for a comprehensive online series to create and deliver scalable CFO services.

Real estate and business ownership (00:17:18)

Discussion on the strategy of keeping the building and retaining an income stream after retirement.

Transition planning and exit planning (00:18:00)

Clients' experiences in selling their companies, keeping properties, and the process of selling properties.

Engagements with business owners (00:18:55)

Exploration of the two types of engagements with business owners, focusing on personal and business guidance.

12-step process for business owners (00:19:47)

Explanation of the 12-step process to increase the value of the company, decrease time in the business, and increase efficiencies.

Risk assessment and advisory work (00:21:34)

Discussion on risk assessment, tax planning, and the need for expert assistance in various aspects of business planning.

Recasting and tax strategies (00:23:47)

Importance of recasting business expenses and tax strategies for business owners preparing to sell.

Cash balance plan and retirement strategies (00:26:27)

Explanation of cash balance plans, retirement contributions, and tax reduction strategies for business owners.