6 Financial Tasks to Complete Before December 31

As the year draws to a close, small business owners have more on their plates than holiday preparations. It’s also the perfect time to get your finances in order and set yourself up for a strong start in the new year. Completing key financial tasks before December 31 can save you headaches, help you maximize tax savings, and give you a clear picture of your business’s health.

Here are six essential year-end financial tasks every small business should prioritize.

1. Review Your Financial Statements

Start by taking a close look at your income statement, balance sheet, and cash flow reports. Compare year-to-date performance against your budget and goals.

Ask yourself:

• Did revenue meet expectations?

• Where did expenses exceed projections?

• Are there areas where cash flow could improve?

A thorough review now helps identify trends and gives you the information you need to make strategic decisions before the year ends.

2. Reconcile Accounts and Clean Up the Books

Unreconciled accounts and messy bookkeeping can lead to mistakes on your tax return. Take the time to:

• Match bank and credit card statements with your accounting records

• Correct any errors or omissions

• Record all outstanding invoices and expenses

Accurate books not only make tax filing smoother, but they also provide a clear snapshot of your business’s financial health heading into the new year.

3. Maximize Tax Deductions

Year-end is your last chance to make moves that reduce your taxable income for the current year. Consider:

• Accelerating business expenses (like office supplies or equipment purchases)

• Making contributions to retirement plans (RRSPs)

• Reviewing eligible business deductions with your accountant

Careful planning now can help minimize your tax bill and improve your cash flow for the coming year.

4. Assess Accounts Receivable and Payable

Take a close look at outstanding invoices and overdue bills. Following up on unpaid invoices ensures you collect what’s owed before year-end, while reviewing your payables can help you prioritize which bills to settle now versus next year.

Managing receivables and payables strategically supports healthy cash flow and reduces surprises in January.

5. Review Payroll and Employee Benefits

Make sure all payroll obligations are met before December 31, including:

• Finalizing year-end bonuses

• Reconciling payroll deductions and remittances

• Updating employee benefits records

Accurate payroll and benefits management keeps you compliant and ensures your team is taken care of heading into the new year.

6. Set Goals and Prepare for the New Year

Finally, don’t forget to plan ahead. Review the past year’s financial performance, identify areas for growth, and set realistic goals for the next year. Consider cash flow projections, budgeting, and potential investments that could help your business thrive.

A proactive approach gives you a head start in January and positions your business for a strong year ahead.

Are You Ready to Finish the Year Strong?

The end of the year is the perfect time to tie up loose ends and prepare your business for success. By completing these six tasks—reviewing financials, cleaning up your books, maximizing deductions, managing receivables and payables, reviewing payroll, and setting goals—you’ll enter the new year organized, informed, and ready to grow.

Need help with your year-end finances? Our team can guide you through bookkeeping, tax planning, and payroll to make sure your business finishes the year strong. Contact us today to get started.