5 Things Small Business Owners Should Do Before the End of the Year

Running a small business takes a lot of effort, but being a small business owner can be rewarding. As we get closer to the year's end, now is an excellent time to consider what you can do to set your small business up for success in the new year.

You can feel more confident about the upcoming year by doing some extra planning before Jan. 1. Ready to prepare for the year ahead? Below are a few things small business owners should do before the end of the year.

1. Get your financial matters organized

As a small business owner, keeping your financial matters organized throughout the year is recommended. If you do this, it will be easier to make financial decisions quickly because you'll have the data you need to make an informed choice. But another reason to do this is to save time and minimize stress during the upcoming tax season.

As we approach Dec. 31, now is an ideal time to get your finances in order. Review documents like your bank statements, business credit card statements, payroll reports, and balance sheet, and make sure you know where everything is. If you struggle with keeping your business finances organized, small business accounting software can be helpful.

2. Make necessary end-of-year business purchases

Now is an excellent time to consider what purchases, like additional software or technology, could benefit your company in the upcoming year. If you intend to make business purchases soon, you may want to do so before the tax year ends.

Buying necessary items before the end of 2023 could allow you to get a tax deduction on qualified business expenses when you prepare and file your 2023 taxes next spring. Don't forget to keep track of your business expenses so you don't miss out on valuable small business tax deductions.

3. Talk with your accountant

The end of the year is an excellent time to chat with your accountant. You can get a head start on the upcoming tax season and discuss your year-end financial goals. Your accountant can also advise you of potential end-of-year tax planning strategies to reduce your tax liability for the tax year. Get an appointment in their calendar before the busy holiday season sets in.

4. Set new financial goals

Whether you own a business or not, setting goals for the new year is not unusual. It's not too early to begin thinking about what financial goals you want to set for your business in 2024. By outlining your goals now, you'll have more time to develop a plan to make your goals happen. Plus, it can motivate you to start the new year strong. Whether you want to increase your customer base or reach a new revenue goal, it's possible, and having a plan can be helpful.

5. Prepare for your hiring and outsourcing needs

If you've considered hiring additional staff or outsourcing some of your everyday tasks, now is the time to prepare for those costs. Hiring extra help could allow you to reach your business goals sooner. But preparing for additional business expenses before the new year begins is essential. This will give you time to rework your budget and ensure you have enough cash in your business checking account to afford any additional upcoming expenses.

Don't wait to plan for the upcoming year

It may feel like 2024 is far away, but the start of another year will be here before you know it. You can help your business thrive by taking care of important year-end financial matters now. For additional small business financial tips, check out our small business resources.