End of Year Preparations: What Small Business Owners Should Do Now

As the year comes to an end, it’s a good time for small business owners to get organized and prepare for tax season. Taking a few simple steps now can save you time, money, and stress later.

You don’t need to do everything in one day. Start with the basics and work through them at your own pace.

Organize Your Income and Expenses

Make sure all business income and expenses are recorded correctly. This includes bank deposits, credit card purchases, cash payments, and online sales. Review your records and correct anything that looks wrong.

Having accurate bookkeeping helps you understand how your business performed this year and makes tax filing easier.

Gather Receipts and Important Documents

Collect all receipts, invoices, bills, and contracts related to your business. If you track mileage, make sure your mileage log is up to date.

Missing documents can lead to missed deductions, so organizing these now is very important.

Review Bank and Credit Card Statements

Compare your bank and credit card statements with your bookkeeping records. This helps identify errors, duplicate charges, or transactions that may have been missed.

This process, called reconciliation, is an important part of keeping your books accurate.

Review Payroll and Contractor Payments

If you paid employees or independent contractors during the year, make sure your records are complete and accurate. Verify totals and confirm contractor information.

This will help you prepare for W-2 and 1099 forms, which must be filed early in the new year.

Consider Tax Planning Before December 31

Some tax decisions need to be made before the year ends. This may include business purchases, expenses, or retirement contributions.

Speaking with a bookkeeping or tax professional before December 31 can help you make informed decisions and avoid surprises.

Plan for the New Year

End-of-year preparation is also a great time to look ahead. Review your financial goals, set a budget, and think about how you want your business to grow in the coming year.

Starting the new year organized gives you a strong foundation for success.

Final Thoughts

Getting prepared before the year ends makes a big difference. Even small steps now can lead to a smoother tax season and a better start to the new year.

If you need help with bookkeeping, cleanup, or end-of-year preparation, professional support can save you time and give you peace of mind.