End-of-year closeout tasks to wrap up your business can seem daunting, but itâs a great way to get a leg up on tax season, which comes up quickly in the new year. Some tasks, like accounting, are year round but require some extra steps come December. This quick and easy business end-of-year checklist will help you cover the bases on your year-end closeout to start the new year on the right foot.
Organize year-end accounting and expenses
Start off your end of the year organization by making sure that business expenses are entered into your bookkeeping software. If youâre using software like QuickBooks, youâll be able to export reports quickly and easily to your CPA once youâre done. Donât have a CPA yet, but want to secure the right one for you before EOY? Here are some questions to ask potential CPAs for your small business.
List any major purchases or fixed assets from the year
In this process, you'll be able to ensure your next year's taxes are prepared for any depreciation calculations.
Prepare documents to file self-employed taxes
If doing your own taxes is your thing, consider filing through TurboTax Self-Employed products, which you can save on through Capital One Business Deals.
Review year-end financials and assess plans for the new year
The end of the year is an excellent time to pull data from the last twelve months. Use this time to get insights into what worked, what didnât, and where to focus efforts for the next year.
Prioritize employee end of year needs
Review and upgrade benefits for employees
Analyzing how your benefits package supports the needs of your employees is a great end-of-year activity. Benefits packages can range from health insurance to 401Ks, stock options, and much more. Ensuring your benefits packages are up to par is a great way to stay competitive as an employer, even as a small business. Take advantage of services such as ShareBuilder 401k through Capital One Business Deals.
Close out previous year payroll
Ensure your employeesâ W2s and 1099s are completed, correct, and sent out on time. A payroll service like ADP can help with issuing necessary forms. Itâs also a good time to check on unemployment insurance rates from your state for the next year.
Consider talent gaps or new headcount needs
Need to add a headcount or scale capabilities in the new year? Consider recruiting qualified staff or contractors through Apple One.
Assess your budget and reevaluate for the new year
Run a side-by-side comparison of your previous year budget and actuals. How much did you save? How much has changed?
Conduct year-end inventory review
If your business carries goods or merchandise, itâs a good time to run an inventory of whatâs on hand and compare it with whatâs in your accounting software or your books.
Making charitable contributions and donations is a great way for your business to end the year
Last-minute charitable contributions made before yearâs end can qualify for deductions on next yearâs return. While this list isnât exhaustive, it is a good starting point and should help you start off the new year on the right foot. Happy New Year from Capital One Business Deals!
This article is for informational purposes only and should not be considered as tax or financial advice. You should always confer with your accountant or financial consultant before making a financial decision for yourself or your company.