End of Year Checklist for Small Businesses

Having an End of the Year Checklist for your business is crucial. It’s a way to make sure you start the next year off on the right foot.  Your company has reached the end of the calendar year, and now you need to make sure you have done everything your business might be obligated to do.  The holiday season keeps everyone busy. Families are traveling; you’re purchasing your gifts and keeping track of your small business stress.  This checklist will help you stay on task.

Decide on employee bonuses and tax them accordingly.

Bonuses are taxed just like normal income, some have thought otherwise. However, keep in mind, additional income earned can bump the recipient into a higher tax bracket. But, there are ways that you as a business owner and your employees can save on taxes, such as contributing a large percentage of your bonuses to your companies 401(k).

Prepare your financial statements for the year

Pull your income & cash flow statements and balance sheets. These reports will evaluate your performance for the year, and you can easily compare it to last year’s numbers. You then also be able to cross-check any goals you made and see if you hit your numbers like forecasted.

Verify vendor information and statements

Take the time to make sure all your vendor and contractor information on file is accurate. For tax purposes, any contractors may require W-9’s, and you will have to issue 1099’s (check with your accountant).  You will also want to make sure that balances fully paid and hold zero balances with everyone. While going through vendor lists, you can also archive old or inactive vendors you no longer do business with and clean that list up.

Back up your data

Backing up data is extremely important. Client files,  emails,  and contacts are ideal things to back up to prepare for the year’s end. You will also want to download any files that may be kept in cloud storage and back them up too.

Check your website after the holidays

If you have a storefront where customers can purchase items directly online from you, it’s essential to make sure you have changed any sales you might have posted. Remove banners you might have added or make sure inventory is shown accurately.  Also, make sure that links and buttons work.

Speak with your Accountant/CPA and Financial Advisor

Scheduling a year-end call with your CPA is smart as well. They can look over any financial statements from your business and determine if any end of the year changes should be done. Sometimes, a small business that might only employ one person might need to take an extra paycheck, pay more taxes, or even take a bonus to make things a little more.  Your accountant will also look over paychecks that have been run, to ensure there are no errors. Your Financial Advisor will also have work to do, and sometimes those two will even talk to one another to make sure your business is in the best position for success in the long term.

Set goals for next year

Based on where you are currently and where you were the year prior, you will be able to make a sound judgment on where you want to be next year. Making new goals, listing ways to stay in front of your competition and setting realistic expectations, and deciding to make any necessary changes to your business can be written down and even started on now, so moving into the following year.

Following these steps and making an end of the year checklist for yourself can get your business organized as the year comes to a close and prepare it to start on the right foot. You can even start focusing on marketing goals for the New Year