As 2024 comes to a close, it’s the perfect time for small business owners to take proactive steps to set up a successful financial year-end. Ensuring your financial records are in order not only helps with smooth operations but also prepares your business for growth in the new year. Here are some simple and effective tips to help guide you through your year-end financial checklist:
1. Review Financial Statements
- Balance Sheet: Check that your assets, liabilities, and equity are accurate and up-to-date.
- Income Statement: Look over your revenue, expenses, and profits to understand trends throughout the year.
- Cash Flow Statement: Ensure there are no discrepancies and that your cash flow aligns with your goals.
2. Assess Your Taxes
- Tax Liabilities: Estimate your tax obligations and set aside the appropriate funds. Reach out to your CPA to discuss tax strategy…it’s not too late.
- Tax Deductions: Look for any last-minute deductions or credits you can take advantage of. Here again, your CPA will give you guidance.
3. Manage You Inventory
- Physical Count: Perform an inventory count to ensure it matches your records.
- Valuation Methods: Check your valuation methods (FIFO, LIFO) and adjust if needed. Discuss with your CFO and CPA before you make a change.
4. Review Accounts Receivable and Payable
- Aging Reports: Follow up on any unpaid invoices to improve cash flow.
- Vendor Payments: Make sure to settle outstanding payables and debts to maintain good supplier relationships.
5. Plan for 2025 with Budget Forecasting
- Budget Review: Compare actual results in 2024 with your budget to spot any differences. Discuss variances with you CFO.
- Planning: Use insights to set realistic financial goals for 2025.
6. Internal Audit
- Compliance: Ensure you’re following all necessary controls and financial regulations.
- Process Improvement: Identify areas where operations can be made more efficient.
7. Employee and Payroll Review
- Compensation Analysis: Review employee salaries and company salary structures and consider year-end bonuses.
- Benefits Evaluation: Evaluate your employee benefits and plan for any necessary updates.
In addition to working through this checklist, consider enlisting the expertise of a Fractional CFO. Their strategic insights may help optimize your financial processes and help ensure your business is set up for success in the year ahead.
Schedule a meeting with us today!
