2024 Year-End Small Business Owner’s Checklist

Heading into the end of the year, it's a good time for business owners to take stock of their business over the past year and strategize for the upcoming one. Use this end-of-year checklist to ensure your business is financially sound and legally compliant if this is your situation.

1. Review Your Financial Statements

You should review your balance sheet, income statement, and cash flow to see if your business is profitable and you are on target with your business goals. A balance sheet lists your assets and liabilities to determine your financial strength. An income statement (or profit and loss statement) shows if your business operates at a profit or loss. A cash flow statement shows how money comes in and out of your company. With accounting software, you can reconcile your bank accounts and credit card statements and generate financial reports. Putting together these reports will also help with tax planning.

2. Prepare For Tax Season

You will want to gather all of the tax documents and information you will need to do your taxes. You may want to schedule a meeting with your accountant or CPA to make sure you are optimizing your tax situation. Ask the following questions:

• Am I missing any depreciation, tax deductions, tax credits, or eligible expenses to reduce my taxable income?
• Have I made all my estimated tax payments to the state and IRS?
• Are there any other strategies, such as deferring income or writing off accounts receivable, to reduce my tax liability?
• What statements do I need to issue (i.e., 1099s for independent contractors or W2s for employees)?

You may also want to discuss any other actions you can take to prepare your tax returns, reduce your tax bill, and organize your business for the coming year.

3. Manage Inventory

If your business has inventory, it is critical to maintain accurate records. Conduct an inventory count of all items and reconcile the physical count with your records. Consult a tax professional about equipment or inventory write-offs.

4. Review Your Business Performance

Reflect on what went well and what challenged your business over the past year. You can compare Key Performance Indicators (KPIs) such as an increase in sales or number of customers and your profitability from the previous year. It may also be helpful to identify your business’s strengths, weaknesses, opportunities, and threats, called a SWOT analysis. And finally, you may want to reach out to your customers for their feedback about areas to improve.

• Do I need to cut back on business expenses or increase my pricing?
• Should I expand to new areas to meet the business needs of my customers?
• What is my competition doing? Can I do it better?

It is also important to set goals for the upcoming year, whether it is new customer acquisition, expanding business lines, or a new social campaign or marketing plan. You want to have goals to focus on to improve your business.

5. Double-Check Licenses and Contracts

Review your business licenses and permits to make sure you have all the appropriate permissions to operate your business.

• Do I have to renew any business licenses or permits?
• Do I have to file an annual report or pay a franchise tax or annual fee to the Secretary of State for my business entity?
• Do any contracts I have with vendors, suppliers, customers, or employees expire?
• Do I have to renew any software licenses or subscriptions?
• Have any laws changed regarding wages or employment requirements?

Make a list of any due dates for license renewals or reports to avoid late fees or penalties. For license or zoning issues, you may want to consult a local business attorney for legal advice.

6. Comply With New BOIR Requirement

On January 1, 2024, there was a new rule that business owners of corporations and limited liability companies (LLCs) must file a Beneficial Ownership Information Report (BOIR). If your business was formed in 2024, you have 90 days from your registration date with the Secretary of State to file the BOIR. For businesses formed prior to 2024, you must file a BOIR by January 1, 2025.

To file a BOIR, go to the Financial Crimes Enforcement Network (FinCEN) website.

In Conclusion

Small business owners should review their financial statements, prepare for tax season, manage inventory, and assess their business performance. It’s also crucial to double-check licenses and contracts and comply with the new Beneficial Ownership Information Report (BOIR) requirement.

With end-of-year business planning and review, you can avoid missing critical deadlines that may result in fees and penalties for non-compliance. You will also be in good shape for tax time and the next year ahead.

Related Resources

• Corporate Transparency Act Ruled Unconstitutional. But Small Business Owners Shouldn’t Get Too Excited (FindLaw Law and Daily Life)
• Small Business Law (Learn About the Law)
• New Federal Reporting Requirements for Small Business Owners (FindLaw Law and Daily Life)