As we draw closer to the end of another year, it’s time for us to start preparing our businesses for what lies ahead in 2024. To aid you in this crucial period of transition and planning, we’ve put together a comprehensive end of year checklist. This guide will help you keep track of all the necessary tasks to ensure your business is ready for the new year.
How do I get started?
The first step to preparing for the new year is to put together a checklist. You don’t know where to start? Greast news, we have completed this first step for you! Read on to learn more!
Tax Filings
Start by getting all your financial records organized for the tax season. This process can be daunting, but having everything in order will ease the process when it comes time to file your taxes.
Inventory Cycle Counts
Ensure that your records match with your physical stock. An accurate inventory count can prevent discrepancies later on. End of year is a good time to do this. However it is acceptable to schedule this during a slower time if your busy season is during the holiday season,
1099 Forms
During the last few weeks of December, you should make sure and organize all your contractor invoices. this will help when you are ready to send out 1099 forms.
1099s must be sent out to any contractors or vendors who were paid more than $600 this year. This is an important step in maintaining good relationships with your partners.
Financial Statements
While you are compiling your 1099 related information, you can start preparing your income statement, balance sheet, and cash flow statement. These documents are not only necessary for tax purposes but also provide a clear picture of your business’s financial health.
Employee Records
This is also a good time to double-check all employee information for W-2s. Ensuring accurate data now can save a lot of trouble down the line.
Audit Your Books
Auditing your books is crucial. Look for any discrepancies and iron them out before they become problems. Just like with most things, early detection means quicker, cheaper resolutions.
Review Goals and Objectives
Reflect on this past year’s goals and set new ones for 2024. This end of year review is a great opportunity to assess your business’s growth and plan for future success.
Budgeting
Based on your end of year review, create a budget for the upcoming year. This will serve as a financial roadmap for your business in 2024.
Evaluate Vendor Contracts and Expenses
Can you cut costs anywhere? Now is the time to review all your contracts and expenses to identify potential savings.
Data Backup
Keep all important data safe and secure. A reliable data backup plan can save you from potential disasters.
Insurance Policies
Review your insurance policies and assess any necessary changes. End of year is a good time to ensure that your business is adequately covered.
Legal Compliance
Stay updated with all relevant laws and regulations. Legal compliance is not just about avoiding fines or penalties, but also about maintaining your business’s reputation.
Customer Relationship Management or CRM
Plan for improvements based on customer feedback. Your customers are your best critics, and their input can help improve your products or services.
Marketing Strategy Review
Analyze your marketing strategies and plan for the upcoming year. Keep what works, tweak what doesn’t, and always be on the lookout for new opportunities. End of year is a great time to do this since you will be setting your budget for the new year already.
Remember, it’s always beneficial to consult with a professional accountant or business advisor. They can provide valuable insights and advice tailored to your business’s specific needs.
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Let’s support each other on our entrepreneurial journeys and gear up for a successful 2024!
