Key Takeaways from 2021 as We Enter 2022
It feels strange to write that 2021 is over. It also feels strange to say we have been experiencing the pandemic for two years now. Two years! The economy has experienced immense change this past year and Washington has enacted large bills to provide COVID-19 relief and address long overdue infrastructure needs. CLA’s recent article, Get a Leg Up On 2022: What We Learned in 2021 and How You Can Apply It Now, is a great read to see our top 10 key takeaways from the past year. Some of these items will carry into 2022. Give the article a read. Within it, are several links to more in-depth articles on specific topics.
If I had to pick my top two for the transportation industry, my first would be a combination – #4 and #5 on the list which are labor market disruption, and operational changes and workforce strategy. This labor market is competitive! Companies need to be creative with recruiting and retaining talent and adjust their strategy with their employees and systems to gain operational efficiencies. This could include outsourcing things you have historically handled in-house, such as payroll. My second would be #8 which is inflation and strategic investment planning. Have you bought a new car recently? Yes, prices are high, and we know companies are seeing increased costs in their operations. Adapt and plan so that your bottom line can still be positive.
Coming in at a close 3rd would be #7 – succession planning. If it weren’t for the current state of the economy, this might have been in the top spot and that is why I’m listing it. Many transportation companies are family owned businesses but even if they aren’t succession is an important thing to plan for. Unfortunately, it often gets placed on the backburner until a previous owner decides they are ready to sell or transition the business. Succession should be planned for years in advance. Plans can shift but to have a plan can put you and your successor on better footing once that transfer occurs.
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
Comments are closed.