Small Business Year-End Checklist

For small business owners, wrapping up the year isn’t just about compliance, it’s your chance to get clear, get organized, and set up for a stronger year ahead. Closing out the year strong, create more stability, growth, and clarity heading into the new year.

#1 – Reconcile all accounts and close out your books. As a small business owner, it’s easy to get behind with your bookkeeping. December is a great time to get caught up.

• Make sure every bank account, credit card statement, and loan account is reconciled.
• Review your balance sheet to make sure you understand everything that’s on it.
• Review your profit & loss to see how your business has performed. Review your monthly financial statement for trends and reasonableness.

By getting your financial records cleaned up and reconciled, you’ll be ready for year-end reporting, your tax accountant, and planning for the new year.

#2 – Call your CPA

If you haven’t connected with your CPA since you completed last year’s tax return, give them a call. If you wait until after the year is over, it’s too late to do any planning.

• Send them your latest year-to-date financial statements.
• Set up a meeting to review your estimated tax liability and tax planning.
• Pay your final estimated tax balance.  

#3 – Assess your team. While it shouldn’t be the only time, year-end is a great time to assess your team.

• If you haven’t checked in for a while, send out an employee survey to gauge team member satisfaction.
• Review performance. Determine any team member issues that need to be addressed.
• Review annual compensation changes and updates to benefits.

#4 – Prepare and file 1099s

• Review vendor accounts and determine which of your vendors will require a 1099.
• Follow up for missing W9 forms.
• Prepare and send 1099s by January 31^st.

The penalties can be stiff if you don’t get 1099s filed timely. Avoid the additional cost by getting a head start.

#5 – Review employee wage and tax information.

• Ensure employee pay and tax data is complete.
• Review tax filings for accuracy.
• Complete W2 review in payroll system.
• Prepare and send W2s by January 31^st.

Getting your employee tax reporting right is another way to show your appreciation for your team. It’s also critical to ensuring you stay compliant and avoid unnecessary penalties and interest.

#6 – Prepare your budget. With your financials caught up and reconciled, you’ve got the foundation for building your budget for the new year.

• Start by exporting your current year data.
• Create a template to build out your monthly budget for the new year.
• Analyze your revenue and growth plans for the new year. Build out your revenue model for your budget.
• Review your spending and expenses. Determine if there are any recurring charges that are no longer necessary. Budget your expenses for the new year.
• Review your final budget for reasonableness. Are you making a significantly higher project in the new year? Does that make sense? A budget should be a tool that will guide you. If it’s unrealistic, it can’t do the job.

#7 – Prepare your annual plan. Don’t just let things happen in your business. Being intentional in your business allows you to be proactive instead of reactive. Spend time thinking and planning to take your business to the next level.

#8 – Schedule Your Year. Getting a head start on next year’s calendar can be a great way to feel prepared, removing unnecessary anxiety or apprehension at year-end.  

• Fill in major vacations or trips.
• Schedule your quarterly meetings.
• Make sure key deadlines and dates are on the calendar.

#9 – Create a high-level marketing plan. Think about your marketing strategy and plans for the coming year.

• Build out a plan.
• Budget the spending.

#10 – Review and complete other compliance reporting.

• Review license renewals needed.
• File sales and use tax.
• Review labor law posters for updates.
• Determine industry-specific filings or compliance activities to complete.

Year-end can be an extremely busy time for small businesses, but with the right preparation and organization, it doesn’t have to be stressful.