As the year winds down, December is a critical month for business owners to tackle essential tasks that will set the tone for a strong start in the new year. Use this checklist to help you close out 2024 with confidence and prepare for a prosperous 2025.
1.Plan for Year-End Bonuses
If you’re considering holiday bonuses, remember they impact both your business’s finances and your employees’ taxes. Bonuses are deductible for the business, but employees will need to account for them as income. Coordinate with your payroll provider to ensure taxes are properly withheld.
2. Maximize Retirement Contributions
December is the final opportunity to maximize contributions to business and personal retirement accounts for 2024. This not only reduces taxable income but also strengthens financial security. If you sponsor a 401(k) or SEP IRA for your business, ensure contributions are processed before the deadline.
3. Gather W-9s for 1099s
To stay compliant with IRS reporting requirements, collect W-9 forms from contractors now. Having this information ready will streamline the process of issuing 1099s in January.
4. Employee Contact Information and Payroll Updates
Encourage employees to review and update their contact information and payroll withholdings before the new year. This ensures accurate records for tax season and minimizes potential payroll issues.
5. Prepare for Employee Reviews
Schedule time to conduct performance reviews. Use this opportunity to celebrate wins, address challenges, and set goals for the coming year. Employee feedback sessions also enhance morale and productivity.
6. Reflect and Strategize
Take a step back to assess the highs and lows of 2024. What worked? What didn’t? Use this reflection to set actionable goals, turning challenges into growth opportunities and scaling your successes into even bigger achievements.
By addressing these tasks now, you’ll wrap up the year on a high note and lay a solid foundation for continued growth in the year ahead. If you need help with any aspect of business planning, bookkeeping, and tax preparation, contact us about our services. We will take care of the “busy work” so that you can spend your time running your business and enjoying the holidays.
