Year-End Planning: Essential Steps for a Strong Start to 2025
As 2024 draws to a close, now is the ideal time for businesses to reflect on this year’s performance and prepare for the opportunities and challenges of 2025. Effective year-end planning can strengthen financial health, streamline operations, and ensure a smoother transition into the new year. Here are some essential steps to consider.
Develop a Strategic Foundation
Having a strategic plan is one of the most important drivers of your business. Your plan should include an understanding of the current state of your business and the development of your strategic goals, as well as the tactical steps needed to achieve your goals. A one page business plan for the upcoming year is a great way for a concise and easy to follow plan that can be shared with key stakeholders.
Budget for Financial Success
Your financials are another key driver of your business. You should have a good understanding of current financials and what they mean. In addition to reviewing your current financials, you should also have a budget for next year. Consider new products or services and see where you can reduce costs. This should be part of your strategic planning process.
Prepare for Taxes
Having clean financials is key in preparing for tax filings. Be sure to have receipts and documentation organized in case you are asked by your tax accountant. Confirm that payroll and sales taxes are being filed properly, if applicable. Review your payroll numbers to ensure the accuracy of your employees’ W-2’s. You may also be responsible for issuing 1099 forms to contractors or suppliers that you have paid.
Review Contracts & Policies
You also want to review any contracts and important documents, such as insurances, employee benefit packages, supplier contracts, equipment leases, and loan documents. Maintaining schedules of these documents is helpful all year round to keep up on renewals and rate changes.
As you can see, year-end preparation isn't just about wrapping up your financials. It is also about revisiting your strategy, planning for next year, and ensuring that your business is streamlined. Having all these components in place helps you operate more efficiently, makes tax time run smoothly, and sets your business up for success in the new year.