2024 End of Year Small Business Checklist

By: Aries Payne

As 2024 comes to a close, it's the perfect time for small business owners to reflect on the past year and prepare for the one ahead. Assessing your business's performance and identifying areas for improvement are key steps in this process. But what should this look like?

Use the following checklist as a guide to prioritize the tasks that will set your business up for success in 2025!

Conduct a Financial Review

A thorough financial review is one of the most important steps you can take as you close out the year. From assessing your cash flow and profit margins to reviewing expenses and tax obligations, understanding your business's financial health will help you make informed decisions moving into 2025.

For this task, you'll need to generate the following financial statements:

Profit and Loss (P&L) Statement – Also known as an income statement, the P&L statement offers a snapshot of your business's revenue and expenses over a select period.
Balance Sheet – Balance sheets offer information on the assets your business owns, what it owes, and how much it's worth.
Cash Flow Statement – Your cash flow statement should be complete with information about your business's revenue and expenses, assets purchased and sold, and loans and repayments.

Note: Before you run these reports, ensure you've completed all other financial activities, such as collecting on past-due invoices, paying vendors or contractors, processing payroll, reconciling accounts, etc.

The reports can also help you get a head start on preparing for tax season. Besides gathering all your tax documents, you'll want to identify which tax forms you'll need to file in 2025 and potential tax deductions and credits you may qualify for. You should also take note of any key filing dates.

Assess Operations

When it comes to running a small business, efficiency is key. As you prepare for the year ahead, it's important to closely examine your operations to ensure everything is running smoothly. From workflows and technology to employee performance, assessing your operations helps you streamline processes and find opportunities for improvement.

Review Vendor List – Ensure the contact information for your active vendors is still accurate and remove any inactive vendors. According to QuickBooks, this is also a good time to assess your current vendor relationships and look for opportunities to negotiate better deals going into the new year.
Take Inventory – This is also a good time to organize your inventory space to ensure all your products are easily accessible and labeled correctly.
Examine Staffing Needs – Assess who you currently have on staff compared to the workload required to keep your business running efficiently. Identify any training needs for the upcoming year. Consider if you need to plan to hire seasonal, temporary, part-time, or full-time staff. Or are you overstaffed and need to reallocate talent or rearrange or reduce schedules?
IT Tasks – Update important software and back up computers and data such as contact information, financial reports, etc. Ensure all files are labeled appropriately and follow a straightforward naming convention.

Review Marketing Performance

As you plan for the year ahead, it's essential to take a step back and evaluate the effectiveness of your marketing efforts. Understanding what worked, what didn't, and why can help you refine your strategies and better allocate resources in the future.

Website Audit – Use Google Analytics to review your website traffic to see if you’re reaching customers online. Check for any broken or outdated links and test your contact form to ensure it works properly. Update product descriptions or other content as needed.
Social Media Audit – Compare stats like follower count and engagement to previous periods and take note of posts and platforms that may have performed considerably better than others.
Review Client/Customer List – Take note of any clients that have been inactive or customers that haven't engaged with your business in a while. What retention strategies can you use to re-engage those individuals in the new year?

Perform Legal and Compliance Checks

As a small business owner, staying on top of legal and compliance requirements is crucial to avoid potential risks and ensure smooth operations. The end of the year is an ideal time to review your business's legal standing, from contracts and permits to employee policies and industry regulations. Performing a thorough check-up helps identify any gaps or changes you need to address before the new year begins, ensuring that your business remains compliant and protected as you move into 2025.

Review Legal Documents – Review lease agreements, vendor agreements, and other business contracts to ensure everything is current. Ensure your business is in compliance with applicable local, state, and federal requirements.
Check Business Permits and Licenses – Double-check that all necessary business permits and licenses are up to date.
Intellectual Property Protection – Review any patents, trademarks, or copyrights to see if they require renewal.
Review Business Insurance – Check your current coverage and determine if it's still adequate for your business or if you need to update your policy due to recent business changes.

Setting the Stage for 2025

Allocating time to assess and prepare your business for the new year will set you up for long-term success. From reviewing your operations and finances to refining your marketing strategies and ensuring legal compliance, by reviewing these areas now, you can confidently move forward into the new year with a clear vision of the tools and steps you need to take to achieve your goals.

Ready to start the New Year strong? Book an appointment with one of our business advisors for additional, no-cost guidance.