Many business owners find themselves juggling multiple tasks at the end of the year as they try to close out their financials. Asking the right end-of-year (EOY) questions can reduce stress, help clean up their books, and even uncover tax savings. Below are ten questions that will help business owners finish out the year strong:

1. Do I Have Any Old or Obsolete Inventory?

Consider writing off old or obsolete inventory. This action frees up storage space and eliminates unnecessary insurance costs, making your business operations leaner.

2. Have I Included All Unpaid Bills?

Recording all unpaid bills in accounts payable before year-end ensures you don’t miss out on any potential deductions, keeping your financial records accurate and complete.

3. Did I Dispose of Any Assets?

Reviewing asset disposals or sales is important to understand the tax implications, including potential write-offs or taxable income from sales.

4. Can I Collect My Open Receivables?

Uncollectible receivables can be written off, which helps clean up your books and avoid paying taxes on revenue you won’t receive. It's essential to address these to improve cash flow.

5. Have I Recorded All Credit Card Purchases?

Capturing all credit card transactions is essential to ensure all expenses are accounted for, which helps avoid missing deductions and keeps financial records accurate.

6. Are My Bank Accounts Current?

Reconciling bank accounts is crucial to catch missing deductions and ensure the accuracy of your financial records. Failing to do this can lead to financial discrepancies that might be hard to correct later.

7. Am I Missing Any Debt?

Verifying any debt or financed purchases are properly recorded ensures that all deductible interest payments are captured, helping in financial planning and tax preparation.

8. Do I Have Any Errors in My General Ledger (GL) Accounts?

It's important to review your general ledger to spot any errors. Mistakes in the ledger may lead to missed deductions or unrecorded transactions, impacting your financial health.

9. Should I Make Any Year-End Purchases?

Making strategic year-end purchases can reduce taxable income, especially for businesses expecting a profitable year. This tactic can result in significant tax savings.

10. Have I Included All Payroll Benefits for the Year?

Reviewing payroll benefits like bonuses and retirement contributions is crucial to avoid complications with tax filings later. This step ensures all employee compensations are appropriately accounted for.

Taking action on these end-of-year questions can make a significant difference for your business. Conducting a thorough year-end review prepares you for tax season and can reveal potential savings. Don’t hesitate to contact our professional accounting firm for guidance. We’re here to help you close out your year with confidence.