There’s always so much to do at the end of the year. On top of the parties, travel, and inevitable food comas that come with the holiday season, it’s also time to do some important year-end financial planning for your business.
Is your business on track to end the year on a good note? Just like somebody else has been making a list and checking it twice, the end of the year is when you should have a checklist of your own. Lucky for you, we’ve got you covered.
Here’s your year-end financial planning checklist
1. Review this year’s budget
Take a look at whether you’ve stuck to your budget for the year so far. Reviewing your budget before the end of the year will give you some time to address any problems. Also, assessing how well you’ve stuck to the budget this year will help you to create a more accurate budget for the year to come.
2. Get your books in order
Confirm your financial records are accurate and up to date, organize your business expenses, and verify that you have current information for your vendors.
3. Assess profit and loss
Make sure you have a clear picture of where your money has come from and where it’s been going throughout the year. This will help you make smart financial decisions for the future.
4. Verify tax-related information
Make sure you’ve reported employee payroll and benefits correctly for W-2s. For freelancers, check that you have correct and up-to-date W-9 forms in order to produce 1099s. It’s cheaper and easier to correct any mistakes now, rather than in the new year.
5. Set some financial goals for next year
Get ready for a successful new year! Meet with a financial professional to help you set some reasonable financial goals for next year.
Reviewing your budget before the end of the year will give you some time to address any problems.
Planning ahead pays off
You might wonder, “Do I really have to do this now?”
Here’s the thing: By doing some smart financial planning now, you still have some time to get your finances under control and avoid any potentially expensive mistakes.
Planning ahead will not only set you up for a smoother tax season, but you’ll have a clearer picture of your business’s overall financial health for the new year. Be prepared, and it will pay off.
Want some help? If you have questions or would like some support with year-end financial planning, give us a shout. We love this stuff so you don’t have to.