Your Year-End Financial Checklist for Business Owners
Practical steps to finish strong and start 2026 with momentum.
Running a business means wearing every hat — operator, strategist, and financial steward. As the year draws to a close, a focused review helps you capture savings, tighten operations, and plan with confidence for the year ahead.
Below is a concise, owner-friendly year-end checklist inspired by leading advisors and CPAs.
1. Close and Reconcile Your Books
Pull together income statements, balance sheets, and cash flow reports. Reconcile accounts, resolve open invoices, and verify that loans and liabilities are accurate. (CPAcharge)
2. Reassess Your Business Structure
Tax laws evolve. Check whether your current entity (LLC, S-Corp, C-Corp) still serves your long-term goals. Some owners benefit from state pass-through entity (PTE) elections that offset federal SALT deduction limits. (CohnReznick)
3. Maximize Deductions and Credits
Before December 31, consider pre-paying certain expenses or investing in growth assets. Review Section 179 and bonus depreciation rules — both may phase down in coming years. (DHJJ) Don’t overlook credits for R&D, hiring, or energy efficiency improvements. (Preferred CFO)
4. Fund Retirement Plans
If you sponsor a 401(k), SEP IRA, or SIMPLE plan, make final contributions and encourage employees to do the same. These steps reduce taxable income while reinforcing your culture of financial wellness. (KeyBank Private Bank)
5. Prepare for Payroll and Tax Reporting
Verify W-2 and 1099 data, ensure all contractors have W-9s on file, and confirm payroll withholdings match IRS requirements. (Clearview Federal Credit Union)
6. Review Insurance and Compliance
Renew key policies — liability, cyber, and D&O — and check that business licenses and permits remain current. Proactively addressing coverage gaps now can prevent costly surprises later.
7. Look Ahead to 2026
Update next year’s budget, forecast revenue, and identify capital needs early. Revisit your strategic plan: What’s working? What isn’t? Align your financials with your long-term growth vision. (KeyBank)
Final Thought
Year-end planning isn’t just a task list — it’s a leadership moment. Take time to reflect, organize, and reset. A few disciplined actions now can lead to a more resilient and profitable 2026.
If you are contemplating a transition in 2026 and want to speak with someone, we would be happy to setup a call or in person meeting with you.
