Business Owner Year-End Checklist
Audio version available here (2 min.)
The end of 2024 is less than a month away, and that means it’s time to get your business ready for the new year. Making year-end preparations is how you can set your business up for success in 2025. If you aren’t sure of what you can do, don’t worry. We have a few action items we recommend for business owners to implement before December 31st.
Financial Statements: It is vital that all your financial documentation is in order before the year ends. Did you open new credit cards in 2024? How about checking accounts? Any new loans? You should also be careful to review your financial statements and ensure your business and personal expenses are completely separate. If you are careless in this and end up claiming personal expenses for business, the IRS may audit you and hand out penalties.
Assets: Throughout 2024, you’ve likely made investments into assets to improve your business’s function. Make sure you have receipts and documentation for all these assets so you can claim deductions on your tax return. Think ahead too. If you plan on incurring certain expenses for your business early in 2025, it may be better to prepay them in 2024 for more deductions.
Contractors: 1099 season is nearly upon us. If you have independent contractors working for you, you must get their tax information on a W-9. Without a valid W-9 on file for each contractor, you could be unable to deduct their payments. The IRS also is likely to impose a penalty if you do not file a 1099-NEC for each contractor by the January deadline.
Tax Planning: Remember that you have your final estimated tax payment coming up in January. You also should make sure you are ready to file your 2024 tax return. Additionally, while you will have a lot of obligations going on in December and January, it is important to not neglect your 2025 tax planning to maximize your tax deductions and credits.
Analytics: Looking back at your business’s performance is key to improving your profitability. Meet with your financial advisor and analyze how you did in 2024 versus previous years. If you’ve had the best year yet, great! If 2024 wasn’t your best year, it may help to revise your business strategies.
The end of the year is a time for holidays and celebration, but it also is an opportunity to set yourself up for success. By following the action items listed above, your business will be at an advantage.
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