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As we approach the end of the year, now is the perfect time for business owners to take a comprehensive look at their operations and prepare for the year ahead. Effective planning, thoughtful collaboration, and proactive financial management can make all the difference in achieving your goals for 2025. Here are key considerations to guide your year-end planning process:

1. Review and Close Out Your Financials

• • Prioritize Accounts Receivables: Ensure outstanding invoices are collected before holiday closures to maximize cash flow going into the new year.
  • Analyze Performance: Examine your most recent financial statements, including your balance sheet, income statement, and cash flow statement. Compare actual results to your budget or projections and address any variances or discrepancies.
  • Meet with Your Accountant: Collaborate with your accountant to streamline the year-end close process. Ensure all necessary documents, like W-9s for contractors, are in order, and begin preparing for 1099 submissions.
  • Plan for Taxes: Engage with your tax provider to strategize on tax planning and ensure timely payment of estimated taxes.

2. Connect with your Financial Team

• • Your Business Advisor: A year-end meeting with your Business Advisor can be instrumental in reviewing loan covenants, assessing lines of credit, and ensuring your accounts and financing are aligned with your business goals. Discuss potential borrowing needs for 2025 or strategies to optimize cash flow.
  • Your Accountant and CPA: Keep an open line of communication with your financial advisors to ensure a seamless transition into the new year. Collaborating now can help prevent surprises later.

3. Audit Bank Account Signors and Permissions

Year-end is an excellent time to review who has access to your business bank accounts.

• • Update Signors: Remove signors who no longer need access and confirm that current signors are still authorized.
  • Review Permissions: Check who has access to business accounts, including online banking platforms, and adjust as necessary to enhance security.
  • Plan for Succession: If leadership changes are anticipated, now is the time to establish account access for incoming team members or executives.

4. Prepare for 2025

• • Build or Refine Your Budget: Use your 2024 results to forecast for the year ahead. Consider anticipated changes in inventory needs, staffing, or capital investments, and set realistic financial goals. Ensure your future cash flow is on track to service your business’s needs.
  • Evaluate Key Vendors and Partnerships: Review your relationships with suppliers, service providers, and financial partners to ensure they align with your future strategy.
  • Strengthen Your Team: Assemble the right support system, including advisors, employees, and external partners, to achieve your business objectives in 2025.

5. Evaluate Operational Readiness

• • Compliance Check: Ensure you’re up to date on all licensing, permits, and regulatory filings specific to your industry. Set calendar reminders for any upcoming licensing expiration dates throughout the next year.
  • Inventory Management: If you manage inventory, conduct a year-end count and adjust records to match actual levels. Plan ahead for potential changes in demand during the new year.

Final Thoughts
Year-end planning is about more than closing out 2024—it’s about setting the stage for a prosperous 2025. By addressing these key areas, you can ensure your business is positioned for growth, stability, and success in the new year. At Baker Boyer, we’re here to be your partner in navigating the complexities of financial planning, growth strategies, and operational readiness. Let us help you achieve your goals with confidence and a clear path forward. Contact us today to start the conversation.