Year-End & New-Year Financial Planning Series
As the year draws to a close and a new one begins, we believe thoughtful financial planning is an important part of faithful stewardship. Each post in this series builds on the last — helping you reflect on the year behind you, plan wisely for the year ahead, and establish steady habits that support clarity, peace of mind, and long-term sustainability. New entries will be released weekly as we move together from closing the year well to starting the next one with intention and confidence.
Preface: “Without reflection, we go blindly on our way, creating more unintended consequences, and failing to achieve anything useful.” – Margaret J. Wheatley
Part 1: Closing the year with clarity and beginning the next with confidence: A Year-End Financial Checklist for Small Businesses
In the final weeks of the year, many business owners feel pulled in multiple directions — finishing projects, managing cash flow, and preparing for time away. While December can feel rushed, it’s also one of the most valuable times of the year to pause and take stock financially.
A thoughtful year-end review doesn’t need to be overwhelming. A few intentional steps can bring clarity, reduce stress, and set the stage for a smoother tax season and a stronger year ahead.
- Review Your Financial Statements
Before year-end, take time to review your profit and loss statement and balance sheet. You don’t need to understand every line item perfectly — but you should understand the overall story your numbers are telling.
Consider:
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- Does this year’s performance align with expectations?
- Were there unusual expenses or revenue changes?
- Are there trends worth paying attention to going into next year?
This review often surfaces questions worth addressing before December 31.
- Ensure Accounts Are Reconciled
Accurate reconciliations are foundational to reliable financial reporting. Make sure bank accounts, credit cards, and loan balances are reconciled and up to date.
Unreconciled accounts often lead to:
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- delayed tax preparation
- misreported balances
- unnecessary follow-up questions later
Addressing these now saves time and frustration in the months ahead.
- Organize Key Documentation
Year-end is a good opportunity to gather and organize important documents, including:
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- payroll reports
- loan statements
- asset purchases or sales
- significant contracts or agreements
Having documentation readily available helps ensure accuracy and reduces delays during tax preparation.
- Evaluate Timing Considerations
Depending on your situation, there may be flexibility in the timing of certain income or expenses. While not every business has year-end options available, it’s still worth understanding what applies to you.
These decisions are best made with context — not in isolation or at the last minute.
- Communicate Changes and Context
If your business experienced growth, challenges, staffing changes, or major purchases this year, make sure your CPA is aware. Context matters, and proactive communication leads to better guidance.
Closing the year well isn’t about perfection — it’s about clarity and faithfulness. The time you invest now helps ensure fewer surprises later.
- How Can We Help?
If you’re unsure whether your year-end information is complete or would benefit from a brief review, now is a good time to reach out. A short conversation before year-end can help identify issues early and set the tone for the coming year.
As you take time to bring clarity to the year just ending, remember that finishing well creates space to move forward wisely. In Part 2 of this series, we’ll turn our attention to planning for the year ahead — focusing on simple, practical steps that can help you begin the new year with direction and stability.