Year-End Financial Checklist: 10 Financial Tasks to Tackle Now 

Year-End Financial Checklist: 10 Financial Tasks Every Business and Family Should Complete

The last few months of the year always feel like a sprint. Between holidays, budgets, and everyone trying to close things out before January 1, financial planning is usually the first thing to get pushed to “someday.” The problem is that a lot of the smartest money moves only work if you make them before the calendar flips.

Whether you’re running a business or just running a household, a little year-end attention now can mean real savings, fewer surprises at tax time, and a cleaner start to the new year. Here are 10 tasks worth putting on your list before December 31.

 

For Businesses

1. Review your tax projections. Don’t wait until your accountant calls you in March. Sit down now and look at where your income landed for the year compared to your estimates. If it’s higher or lower than expected, you may still have time to adjust estimated payments or make moves that shift your tax liability.
2. Maximize retirement plan contributions. SEP IRAs, Solo 401(k)s, and other business retirement plans have contribution limits that reset every year and unused room doesn’t carry forward. The IRS publishes updated contribution limits annually, and checking where you stand now gives you time to top off contributions before deadlines hit.
3. Reconcile your books and chase down open invoices. A messy set of books at year-end makes tax prep slower and more expensive. Reconcile your accounts, follow up on unpaid invoices, and write off anything that’s genuinely uncollectible. Going into January with clean books saves everyone time.
4. Confirm 1099 status for contractors and vendors. January deadlines for issuing 1099s come up fast. Now is the time to confirm you have current W-9s on file for every contractor and vendor you’ve paid, so you’re not scrambling to track down a mailing address in the first week of the new year.
5. Evaluate equipment purchases before the deadline. If you’ve been considering new equipment, software, or vehicles for the business, year-end is worth a second look. Depending on your situation, purchases made and placed in service before December 31 may qualify for accelerated depreciation. This is a conversation worth having with your accountant rather than a decision to make alone.  The rules have real nuance.

 

For Families

6. Use it before you lose it: FSA and HSA funds. Flexible Spending Accounts typically have “use it or lose it” rules, while Health Savings Accounts carry over but still have annual contribution caps. Check your balance, schedule any outstanding medical or dental appointments, and confirm you’re on track to maximize contributions where it makes sense. The IRS guide to HSAs and other tax-favored health plans is a good reference if you’re unsure how your plan works.
7. Review beneficiary designations. Life changes.  Marriages, divorces, new kids, a passing in the family.  Beneficiary forms on retirement accounts and life insurance don’t update themselves. Take ten minutes to pull up your accounts and confirm the names listed are still the ones you’d choose today.
8. Take required minimum distributions, if applicable. If you or a family member is required to take RMDs from a retirement account this year, don’t let this slip. Missing the deadline can trigger a steep penalty, and it’s an easy thing to lose track of amid everything else on your plate this time of year.
9. Look at your investment accounts for tax-loss harvesting. If you have investments outside of retirement accounts, year-end is the traditional window for reviewing gains and losses. Selling a losing position to offset a gain elsewhere can reduce your tax bill  But timing and wash-sale rules matter, so this is worth a conversation with whoever manages your investments or taxes.
10. Set (or reset) next year’s household budget. Whether this year went exactly as planned or nothing like it, year-end is a natural moment to look ahead. Block out an hour to sketch a budget for the coming year.  Even a rough one gives you a benchmark to check in against throughout the next twelve months.

 

The Common Thread

None of these ten tasks are complicated on their own. What makes year-end planning hard is simply making time for it before things get busy.  And then busier. The businesses and families who benefit most from these moves aren’t the ones with the most complex finances; they’re the ones who actually sat down and worked through the list.

If you’re not sure where to start, or want a second set of eyes on your specific situation, that’s exactly the kind of conversation we’re happy to have. A short planning session now is a lot easier than an unpleasant surprise in April.

Looking for more ways to close out the year strong? Check out our posts on: Q4 Tax Planning Moves for Small Business Owners and Budgeting Vs Forecasting: Does it Matter?