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With 2025 wrapping up, now is the time for small business owners to take proactive steps to strengthen their financial position. While your bookkeeper handles reconciliations, reporting, and compliance, business owners should focus on providing complete information, making year-end decisions, and engaging in tax planning.

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Provide Any Missing Information to Your Bookkeeper

Your financial records are only as strong as the information behind them. If you haven’t already, make sure to provide the following information to your bookkeeper before year-end:

• Receipts for any major purchases and loan agreements.
• Any updated contractor information and W-9s so that 1099s can be issued on time.
• Any business expenses paid personally so the expenses can be recorded and reflected in your financials.  

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Review and Plan for Taxes with Your Tax Accountant

This is a crucial time to connect with your tax accountant. Tax planning shouldn’t just happen in April—it should be a year-round conversation. Proactive planning now can help you reduce liabilities and maximize deductions. Your tax accountant will look at both your business profit and your personal situation (W-2 wages, investments, and estimated tax payments). Some important areas they can assist with include:

• Retirement Planning: Choosing the right retirement accounts (IRAs, 401(k)s, etc.) for tax advantages.
• Future Planning: Timing investments or major purchases to optimize tax benefits.
• Business Strategy: Using tax planning to improve cash flow and overall financial efficiency.

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Reflect on 2025 Business Performance & Set Goals for 2026

The end of the year is an ideal time to:

• Review your profit & loss statement with your bookkeeper.
• Evaluate what products, services, or clients are most profitable.
• Identify areas of overspending.
• Start planning your budget and goals for the upcoming year—whether that means revenue growth, new hires, or cost savings.

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Employee & Contractor Wrap-Up

Before year-end, confirm that all employee information (addresses, Social Security numbers, etc.) is up to date for W-2 processing. For contractors, double-check records so that 1099s are accurate. If you’re considering bonuses or benefits, now is the time to finalize those decisions.

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General Housekeeping Tasks

Finally, don’t forget the administrative items that can easily be overlooked:

• Renew business licenses or registrations.
• Update insurance coverage (general liability, workers’ comp, health, or life insurance).
• Document any ownership or banking changes.

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Your bookkeeping team at Journals & Ledgers is here to keep your financials clean, accurate, and compliant. But year-end success also depends on the business owner making timely decisions and engaging in proactive tax planning. Reaching out to your tax accountant before December 31st can make the difference between missed opportunities and meaningful tax savings.

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By staying organized, making informed decisions, and planning ahead, you’ll not only close out this year with confidence—you’ll set your business up for an even stronger year ahead.