As a small business owner, staying on top of your compliance requirements at the end of each year is essential. This checklist will serve as a baseline to ensure you have addressed your minimum compliance requirements. If you need more help, don't hesitate to contact a Finalytics advisor for a personalized business checklist.
Bookkeeping Tasks
Record outstanding transactions through December 31st.
Perform a physical inventory count to accurately report on-hand quantities and cost of goods sold (COGS).
Review open invoices to write off bad debt (uncollectible accounts receivable).
Reclassify personal expenses to the owner/shareholder distribution account.
Review uncleared activity that has been outstanding for 90+ days to determine if an adjusting entry is needed to void prior period transactions.
Prepare financial statements (Profit & Loss, Balance Sheet, and Statement of Cash Flows)
Payroll Tasks
Verify there is a Form W-4 and Form I-9 on file for each employee.
Update employee personnel profiles for name, employment status, phone number, email, and mailing address changes.
Verify there is a Form W-9 on file for each independent contractor.
Process and journalize the final payroll run, including PTO payouts and year-end bonuses.
Update the employee handbook and labor law posters.
Notify employees of the following benefits during the open enrollment period.
Evaluate regulation changes to minimum wage and overtime rates.
Create your 2025 company calendar with holiday closures and training courses.
Tax Preparation Tasks
Share your financial statements, fixed asset listing, depreciation & amortization schedules, and prior year tax return with your tax preparer.
File Forms W-3, W-2s, and 1099-NECs (contractors paid $600 or more)
File Forms 1094-C and 1095-C if employees are provided company-sponsored healthcare coverage.
Other Tasks
Review business contracts and lease terms to negotiate renewal terms or research alternative solutions before they expire or auto-renew.
Perform a data security audit to ensure GDPR and CCPA requirements are met.
Compare the prior year's performance against your business goals to strategize how to align your efforts to reach your new year's objectives. Consider financial, marketing, operating, and external economic factors.
Revise your annual overhead budget and sales forecasts.