Resolutions: That annual tradition that everyone loves to hate. But, making a resolution can motivate you to accomplish tasks you might otherwise neglect. To aid you in that endeavor, here are three resolutions that every business owner should adopt.

1. Audit your business licenses. Nearly every business—even a home-based business—requires one or more business licenses. And, most of these licenses must be renewed periodically. Establish a New Year tradition of auditing your license requirements. Is the information provided when you applied for the license still current, or are updates needed? Will you need additional licenses in 2016 because of expansion plans? Tracking down license requirements can be a nuisance, so you may want to take advantage of CT's business license application package.
    
2. Update documentation of entity actions. If you operate as a corporation or LLC, you also need to make sure that the entity's records properly reflect any compensation, profit-sharing, loans, and assets purchases decisions made in 2015. The IRS may scrutinize the documentation if they question whether a salary/dividend payment was reasonable or whether a loan to a shareholder was bona fide or disguised compensation. A written bonus policy is important when substantiating deductions. Failure to document authorization for purchases of equipment or property could put deductions at risk. Improperly documenting transactions undertaken by the entity can affect more than tax liability; there can be serious repercussions for limited liability protection, as well.
    
3. Review your insurance coverage. If your business has been growing, make sure your insurance coverage has grown along with it. This applies to liability insurance coverage, as well as property damage coverage. If you obtain or store customers' personal information, you may wish to consider obtaining insurance to protect you in the event of a data breach. These data breaches are increasingly common and can put a small company out of business. Another form of insurance that often gets overlooked is "business continuation insurance." Your fire insurance will cover you if your business has a fire, but what happens if a fire in an adjacent business shuts down your operations? An investment in business continuation insurance can prevent losses in this case.

Auditing your business licenses, documenting business transactions and reviewing your insurance coverage will help you get a handle on your business needs and get 2016 off to an excellent start. 

Making—and keeping—these three resolutions can help ensure 2016 is your most successful year thus far.