Help Your Business Finish Strong with These 10 Year-End Tasks

As we plan for the new year, it’s an ideal time for business owners to focus on wrapping up the year effectively. While the charm of holiday festivities – from savoring turkey dinners to enjoying cozy fireside gatherings – is undeniable, focusing on year-end business tasks is crucial for ensuring a seamless and successful transition into the new year.

Position Your Business for Success in the New Year

By strategically tackling these ten key year-end activities, you’re positioning your business for growth in the coming year and proactively safeguarding against potential challenges that may arise in the future:

1. Review financial reports. Evaluate where your business stands today compared to the goals set at the beginning of the year. Did your revenue and profit exceed previous years’ performance? Analyze your income statement, balance sheet, and cash flow statement to compare actual figures with your expectations. Additionally, determine if any third parties require compiled, reviewed, or audited financial statements, and schedule this with your advisor well before the deadline.
2. Assess cash flow trends and patterns. Look for trends, paying particular attention to those you didn’t anticipate. Can you increase cash flow by minimizing unnecessary expenditures, or should you consider shifting the timing of certain necessary expenses?
3. Evaluate the company’s performance and set goals. How well did the business meet its objectives for the year? In addition to overall growth, revenue, and profitability, consider individual achievements. Award bonuses and raises as appropriate, then set well aligned personal goals that support the overall company goals for next year. Do the numbers support additional business investments or new hires?
4. Reconcile accounts receivable and collect on past-due accounts. Try to collect on outstanding receivables before the end of the year, especially those in arrears. Identify any past-due amounts that may be uncollectible and decide how to proceed.
5. Gather tax documents now. Start collecting the records needed for this year’s tax return, including receipts for deductible expenses, taxes paid, and other relevant documents. Schedule a meeting with your tax advisor to understand any tax rule changes that may affect your company. Don’t let tax deadlines sneak up on you—provide all necessary records promptly to ensure timely and accurate preparation of your returns.
6. Gauge tax liabilities and consider optional year-end deductible expenditures. A preliminary look at the company’s tax picture for the year can be invaluable to help you make short-term financial decisions. Should you make purchases now or wait a few months to claim the deduction next year? Is it better to delay revenue where you can?
7. Do a December data cleanup. Check backups for corrupt data, review records for missing information, and verify that file naming conventions are consistent. Tidy up paper and digital files to keep them well organized.
8. Update payroll and benefits records as well as vendor data. As you tidy up your data, ensure staff and vendor contact information is up to date. Verify that records of payments to employees, contractors, and vendors are accurate and complete to ensure year-end reporting reaches the correct recipients. If your company offers a retirement plan, check whether a 401(k) audit* is required and schedule it with your advisor in advance.
9. Align inventory records and replenish supplies. Verify your inventory against recorded data and investigate any discrepancies you discover. Review office supplies and other company-used products and discontinue storing or ordering unnecessary items (like that extra toner for the printer you replaced in January!). If your company requires a financial audit, schedule a physical inventory count or observation with your auditor.
10. Give your company’s website and communication tools a checkup. Make sure your company starts the year with up-to-date information across all communication platforms, including your website, social media profiles, business cards, phone recordings, and automated email responses. Check for and fix any broken links, and update names, titles, addresses, phone numbers, and messages to keep everything accurate and current.

Collaborate for Business Success

If you’ve been keeping up with the business “housekeeping” throughout the year, then checking off everything on this list probably won’t feel too burdensome. If it proves more of a hassle than you had hoped, however, that may be a sign you need a different approach.

Consider options like outsourced accounting and IT services to optimize business processes and gain access to reliable, real-time data. You’ll also free up additional time for leaders to work on high-level tasks rather than spending hours on routine chores that don’t yield great results.

Contact your CRI business advisors to learn more ways to build value in your business and supercharge your efficiency next year. With the right support and strategies in place, you can help your business thrive in the new year and beyond.