Year-End Business Planning Checklist
The air is crisp, daylight is short, and now is the time to focus on year-end business planning. As the rush of winter holidays loom, you’ll want to nail down these tasks sooner rather than later.
Accounting
Be sure that your books are up-to-speed as we approach year-end. Complete cash and credit card account reconciliations, tally your payables, contact clients with past due receivables, and follow up on any outstanding issues now. If you carry inventory be sure you have a plan in place to do a physical count towards year end. Review your financials for accuracy and be ready to provide them to your accountant.
Tax Planning
Contact your accountant to find out their timeline for doing tax planning, but generally expect it to be mid-November to early December. Provide your up-to-date financials or a backup of your accounting software within that time frame. You want to have a plan in place with enough time to execute it. Any asset purchases need to be in service by Dec 31st and employee bonuses need to be issued before the end of the year.
Vendor Information
Take a look at your vendors and make sure that you have current addresses, EINs and contact information for smooth Form 1099 preparation in January. Contact vendors as needed to get an updated Form W-9. Need further information on 2020 Forms 1099? Find it here.
Employees and Payroll
Review your personnel files and update your payroll software as needed with address changes, etc. Determine if you will issue year-end bonuses and make sure you run them through your payroll module as they are required to be included on your employees’ Forms W-2. Make note of taxable benefits and plan to get them added to wages prior to year-end. If you are organized as an S-corporation you may have requirements to add Shareholder health insurance and HSA contributions to wages. Contact your accountant as needed to help with payroll adjustments.
Holiday Planning
Consider sending your clients holiday cards, emails or a small gift. You may need to update your CRM with current addresses before doing so. As open houses and gatherings are limited this year, consider doing a short company video to send out good cheer and holiday wishes. Don’t forget holiday cheer for your employees either. Cards, gifts and bonuses are always appreciated (just be sure you comply with IRS rules regarding taxable fringe benefits.)
Strategic Planning
Prepare your budget for 2021 and do some cash flow forecasting. Update your website and social media sites. Review prior year goals to note accomplishments and areas for improvements. Set goals for the new year and evaluate your staffing needs to reach those goals.
Relax and Reflect
Now that your year-end business planning checklist is complete, take some time to relax before facing the challenges of a new year. Enjoy time with family and friends. Reflect on your personal goals to see if they are in line with your business goals. Look for areas to implement changes to achieve your desired balance.
