The end of each year is when we plan for the holidays, gather with family, and start preparations for the new year. It's a time to slow down and set goals—to look back at the year and plan for the one ahead. That's why the end of each year is also a time to have a system in place that can guide you through closing out the year for your small business. 

Proper year-end procedures mean you get a clear idea of what's ahead, and you get to file your taxes on time (and accurately). There are simple things you can do to ensure your small business's numbers and strategies are in place right now. 

It can feel disorganized and stressful when there's no year-end process to sail into tax season smoothly—good tax preparation is key.

Without proper planning, you could:

• Miss out on tax deductions.
  
• Pay higher taxes.
  
• Feel uncertain about how your business is doing financially.
  

Here are five things you can do to prepare for year-end as a small business:

1.) Review your bookkeeping

If you've kept track of your financial data all year, review your numbers toward the end of the year. Without knowing your numbers, planning for taxes can be unpredictable. It's also essential to know your numbers to have a strategic plan for next year. Are there products or services that are selling great or not so great? What marketing strategies can you try to bring sales up? Are there outstanding credit cards or loans to pay off soon?

And if you don't have your financial data in accounting software yet, it's time to hire a bookkeeper to get it all situated for you. Working with a bookkeeper on an ongoing basis means your CPA has all the information needed to prepare your tax return on time. 

2.) Get your tax documents in order

Have you received 1099s from clients? Do you have clean and up-to-date financial records with source information, such as receipts, attached? Are there other tax forms you're expecting to receive, such as investment documents? If so, get everything organized in an annual tax folder so you have it all handy when you need it. 

3.) Review employee information and run your last payroll of the calendar year

If you have employees, verify their data before December 31st. Be sure each employee's contact and tax information is up to date and correct. The information on file includes a legal name, social security number, current address, and other contact information.

Adjust your last payroll cycle for bank holidays and make sure all employees receive a paycheck on schedule during the final payroll of the year.

As a Symply payroll customer, you get the peace of mind that our payroll experts will guide you through checking all things payroll off the list. Contact us here and chat with our team about how we can help you with payroll this year.

4.) Meet with your bookkeeper and CPA

Schedule a time to chat with your bookkeeper and CPA about your financial goals for the upcoming year. A bookkeeper can help you build a long-term cash flow strategy to reach revenue goals, while your CPA enables you to maximize tax savings, so you get to keep more of your money earned. 

It's important to note that both bookkeepers and CPAs start their busy season on January 1st, so schedule time with them before they're deep in financial statements and tax forms.

Your CPA can also help you determine whether your entity type is advantageous for you. It may be time to shift from a Sole Proprietorship to an S-corporation, which may have significant tax advantages for a business bringing in considerable revenue each year.

If you don't have a bookkeeper and a CPA on your team, take the time now to find a good match. For help with this, check out our article How to Find an Accountant for Your Small Business.

5.) Prepare for tax liabilities and understand your payment options

As much as we can prepare for taxes by making quarterly estimated tax payments, for example, sometimes a larger than expected bill happens—research tax payment options such as an IRS installment agreement, settlements, or a temporary payment postponement.

Your CPA can guide you through each option, so you know which one will work best for you. 

These five things should be part of your year-end plan every year. Crossing these items off your list makes for a hassle-free new year. 

Set aside one hour per week until each item is complete. Do one small thing at a time, so you can get back to focusing on your business.

We're here to help too. Click here to download Symply's year-end checklist for more tips and strategies to make the end of the year merry and bright in your business. 

Happy Holidays and Happy Year-end!