Reflect, Review, and Reset Before the Year Ends
The end of the year is quickly approaching. Already your calendar is filling up with events and your to-do list is overflowing with “gifts” to do’s. Not to mention the end of year tasks for your business.
But before you head into the holiday craziness, let us help you prep your business finances to avoid any last week of the year “oh shoot, do I need to do anything to not owe a BUNCH of money in taxes?” And while wrapping up your business finances might not sound like the most festive task, it’s one of the most important things you can do to start the new year strong.
Before the holiday chaos sets in, take a moment to check in on your financial health. How did your business do this year? What worked well, and what needs a little more attention?
Getting your finances in order now can make all the difference later. It’s not just about avoiding stress at tax time—it’s about creating the confidence and clarity you need to make wise decisions for your business and your family in the year ahead.
As a CPA and bookkeeper, I help business owners every day make sense of their numbers and create a plan that supports their goals. This end of year financial checklist will walk you through the same simple, strategic steps I use with my own clients.
If you’re not sure where to start or what to prioritize, this is a good time to schedule a financial review. Let’s make sure you close out this year with peace of mind—and a plan for what’s next.
1. Review Your Financial Goals from the Past year
Before setting goals for the upcoming year, take an honest look back.
What financial goals did you set at the start of this year—and how close did you come to reaching them?
Look at your income, expenses, and overall cash flow from the past year. Where did things go as planned? Where did unexpected changes impact your results? Maybe you expanded your services, adjusted pricing, or managed through a season that required flexibility. Either way, this review helps you see the full picture.
This step isn’t about perfection. It’s about understanding what worked, what didn’t, and what you want to improve going forward. When you have clarity around your numbers, you can set financial goals for the upcoming year that truly support your business and life goals.
Pro Tip: Pull your profit and loss statements for each quarter and look for trends. Consistent patterns—positive or negative—tell you where to focus your attention next year.
2. Evaluate Your Tax Payments and Planning
Before the year ends, take time to review your tax payments and overall tax planning strategy. This simple step can prevent unnecessary surprises at tax day and help you make the most of available tax deductions.
Start by confirming that your quarterly tax payments are current and accurately reflect this year’s income. If your business performed better than expected, your tax liability may be higher than originally planned. Reviewing this now gives you time to make adjustments before tax day arrives.
Next, consider whether there are opportunities to reduce your taxable income. Strategic charitable contributions, additional retirement contributions, or year-end equipment purchases can all make a difference in your tax situation.
This is also a good time to check that you’ve set aside enough cash to cover your tax payments comfortably. A quick review with your CPA, tax advisor, or tax professional ensures you’re not caught off guard and that your business remains in compliance with current tax laws.
Pro Tip: Partnering with a trusted tax professional allows you to make informed decisions before year-end. They can help you identify potential savings and ensure your business is positioned for a smoother start to the new year.
3. Maximize Retirement Contributions Before the Year-End Deadline
Before December 31, review your retirement accounts and make sure your contributions are on track. This is one of the most effective ways to strengthen your financial future while lowering your taxable income.
If you have a traditional IRA, SEP IRA, or 401(k), check your contribution limits and see whether there’s room to contribute more before the year ends. These retirement contributions may offer valuable tax advantages now while helping you stay on track with your long-term savings goals.
Pro Tip: Treat your retirement review as part of your larger financial planning process. Knowing how your retirement savings fit into your business and personal goals gives you confidence and direction going into the upcoming year.
4. Review Your Investment Portfolio and Risk Tolerance
A lot can change in a year—both in the market and in your business. That’s why a year-end review of your investment portfolio is so valuable.
Look at your asset allocation to make sure it still reflects your current goals and risk tolerance. If your business had a strong year or your income changed significantly, it might be time to rebalance your portfolio.
You may also want to consider tax-loss harvesting—selling certain investments at a possible loss to offset capital gains elsewhere. This strategy can reduce your overall tax liability, but it’s best done with guidance from a financial advisor who understands both your business and personal finances.
Pro Tip: Make note of any major life changes—such as a new home, a new baby, business expansion, or upcoming retirement—that could impact your investment strategy. Keeping your investment portfolio aligned with your current stage of life helps preserve long-term stability.
5. Plan Charitable Contributions and Giving
Generosity is a powerful part of financial stewardship. As you wrap up the year, take time to plan your charitable contributions—not just for the tax benefits, but for the impact they create.
Consider which organizations or causes you’d like to support and review the timing of your donations. Contributions made before December 31 qualify for tax deductions in the current tax year. It’s important to understand what deduction you may qualify for as a result of your charitable giving, like earning mileage for volunteering. The deduction for mileage is $.14 per mile. For example, if you drive 100 miles in 2025 to volunteer in the kid’s ministry at your church, you can deduct $14.
If you’re over 70 and a half, you might also explore making a qualified charitable distribution directly from a retirement account, which can lower your taxable income while supporting a ministry or nonprofit you care about.
Giving generously whether through time, resources, or finances reminds us that our money has purpose beyond the numbers.
Pro Tip: Keep records of your charitable donations and ensure you receive receipts for tax reporting. If you plan to give larger gifts, consult your CPA or financial advisor to confirm you’re maximizing your tax advantages.
6. Review Your Insurance Coverage and Policies
We get it, insurance isn’t the most exciting topic, but it’s one of the most important layers of financial security. The end of the year is a good time to review your insurance coverage and make sure it still fits your needs.
Start with your health insurance—especially if you’re in open enrollment season. Then review your life insurance policies, disability coverage, and business insurance to confirm your limits are appropriate for your current financial situation.
If you’ve had major life changes—like buying a new home, adding family members, or growing your business—your policies may need updates. A quick check now can help prevent bigger issues later.
Pro Tip: Schedule an annual insurance review with your agent or financial advisor to ensure your coverage matches your goals. This simple step helps protect the business and family you’ve worked so hard to build.
7. Assess Your Emergency Fund and Savings Goals
An emergency fund is one of the best safeguards for long-term financial stability. Whether it’s an unexpected repair, a dip in revenue, or a personal emergency, having 3–6 months’ worth of expenses saved can give you margin and peace of mind.
Review how much you currently have set aside and whether that amount still feels right for your season of life and business. If you had to draw from your emergency fund this year, make a plan to rebuild it gradually in the upcoming year.
This is also a good opportunity to revisit your savings goals both business and personal. Building consistent savings habits doesn’t just improve your financial health; it strengthens your confidence in managing the resources entrusted to you.
Pro Tip: Automate your savings wherever possible. Setting up recurring transfers – no matter how small – helps you stay consistent without having to think about it.
8. Review Your Estate Plan and Beneficiary Designations
We get it, estate planning isn’t exactly a warm and fuzzy topic that everyone is chomping at the bit to jump into. However, it really is necessary. Even though it’s easy to put off, your estate plan deserves attention before the year ends. Review your will, trust, and beneficiary designations to make sure they reflect your current wishes and family situation.
If you’ve experienced any major life changes this year, such as marriage, divorce, the birth of a child, or purchasing a new home, updating your documents is essential. These small updates ensure your assets and financial plans are protected and aligned with your goals.
If you haven’t yet created an estate plan, consider this your reminder to get started. It’s one of the most loving things you can do for your family and your business.
Pro Tip: Work with a qualified estate attorney or certified financial planner for legal advice that fits your specific situation. Keeping your plan current is a simple way to protect your legacy and reduce stress in the future.
9. Evaluate Your Business Budget for the Upcoming Year
Once you’ve reviewed how this year went, it’s time to plan for the upcoming year. Think through your financial goals, team capacity, and growth opportunities.
Are there areas where you need to increase spending to support expansion or improve efficiency? Maybe it’s time to outsource certain financial tasks, invest in better systems, or bring on professional support for bookkeeping or tax planning. On the other hand, you might find places to scale back or reallocate resources for stronger returns.
Your budget should align with your overall financial strategy—not just reflect your expenses. When you create a clear plan for cash flow and intentional growth, you position your business for both profit and peace of mind.
Pro Tip: Use your financial review as an opportunity to forecast what the next 12 months could look like. Adjusting early gives you the flexibility to make wise decisions before challenges arise.
10. Schedule a Year-End Financial Review with Your CPA
Before closing out the year, take time to meet with your CPA or financial advisor. A professional financial review can bring clarity, uncover missed tax benefits, and ensure you’re prepared for the new year.
This is the perfect time to confirm your tax planning, revisit retirement accounts, and check your overall financial health. A CPA can also help you identify ways to strengthen your financial security and make necessary adjustments to support long-term stability.
Pro Tip: Don’t wait until tax day to ask questions. Building an ongoing relationship with your CPA or bookkeeper ensures that your numbers work for you, not against you, all year long.
Finish the Year Strong and Start the Next with Confidence
Financial planning doesn’t have to feel overwhelming. By taking these simple steps before December 31, you can end the year with peace and confidence and start the following year knowing your finances are aligned with your goals.
The best time to make progress is before the year officially resets. Schedule your end-of-year financial review with your CPA and give yourself the peace of mind that comes with clarity, preparation, and wise stewardship.
