As we near the end of the first quarter, businesses are entering a crucial phase for introspection and strategic planning. Without a solid budget in place, gauging your performance becomes a challenging task. Budgets are the navigational charts for small businesses, offering a clear roadmap to manage cash flow, make informed decisions, and foster sustainable growth. They’re the financial compass that keeps businesses on course towards success. Here are four key reasons why prioritizing budgeting is crucial for small businesses.

Starting on January 1, 2024, a significant number of businesses will be required to comply with the Corporate Transparency Act (CTA). The CTA was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company.

It is anticipated that 32.6 million businesses will be required to comply with this reporting requirement. The intent of the BOI reporting requirement is to help US law enforcement combat money laundering, the financing of terrorism and other illicit activity.