The Mission Driven Business Podcast Episode 90: Your 6-Step Checklist To Close The Books On 2024

Ready to end the year with a gift to your future self? In this special episode, Brian guides you through a six-step process to close out 2024 and set yourself up for success in 2025. You’ll tidy your finances, get a jump start on thinking about taxes, evaluate your business performance, and set strategic goals. 

Your Year-End Business Review Checklist

Step 1: Close Out Your Financials

Closing out your financials may sound dry, but it’s imperative to get right.

• Review your books -- Review your profit and loss for the year for any discrepancies, outstanding invoices, or payments that need to be paid. Make sure you have the correct categories for your transactions to save you a headache when you prepare next year’s tax return.
• Reconcile your accounts -- Every month, but especially at the end of the year, you should reconcile your financial accounts, including bank accounts, credit cards, and loans, to reveal unaccounted expenses or hidden fees.
• Analyze your cash flow -- Review your cash flow to see what you owe and who owes you. You can also get a clear picture of whether you can defer income to next year or incur more expenses this year to save on taxes.
• Review your payroll -- Ensure wags, taxes, and benefits are accurate and that Bonuses are accounted for with proper tax withholding.

Step 2: Evaluate Your Tax Position

Once your financials are in place, it’s time to shift to taxes.

• Consider year-end tax deductions -- Incur expenses for purchases like office supplies, software, professional services, and equipment you will have in the coming year.
• Review your retirement contributions  -- Don’t miss your opportunity to make employee contributions to your Solo 401(k) before the December 31 deadline.
• Plan for next year’s taxes -- Project what your tax liability might look like next year, plan for potential quarterly tax payments, and evaluate whether you might qualify for tax credits or deductions. Also, start gathering important information for tax forms, such as 1099 NECs and W2s.

Step 3: Reflect On Business Performance

Once the numbers are in order, it’s time to review the past year of business performance and make meaningful adjustments.

• Review key metrics -- Identify the key metrics for your business, determine whether or not you hit them, and analyze why or why not.
• Analyze client data  -- Come up with your ideal client profile but remember that high paying isn’t the same as high value.
• Employee performance reviews -- If you have a team, conduct an annual performance review to acknowledge achievements, identify areas for improvement, and set clear expectations for next year.

Step 4: Refine Your Vision, Mission, and Values

Let’s dig deeper into your mission, vision, and values, which are at the heart of mission-driven businesses.

• Reassess your mission and vision -- Ask whether your mission or vision has evolved or shifted and update your mission and vision statements if necessary.
• Clarify your core values  -- Just like with your mission and vision, reflect on your core values and update them if necessary.

Step 5: Set Strategic Goals For 2025

After reflecting on the past, let’s look forward by setting achievable, flexible goals.

• Set SMART goals -- Aim to set goals that are specific, measurable, achievable, relevant, and time-bound.
• Break down goals into actionable steps -- Know the next, right step to make your goals less overwhelming and chart a clear path forward.
• Build in flexibility - The market, economy, and client needs are always evolving. Build checkpoints into your plan and make course corrections as needed.

Step 6: Tidy Organizational Processes

Don’t overlook the operational side of your business to save yourself headaches and hours in 2025.

• Audit your systems and tools -- Review the software, apps, and systems you are using, take note of the tools you aren’t using, and automate repetitive tasks.
• Organize digital files -- Organize digital files in clearly labeled folders to easily find essential documents.
• Review contracts and legal documents - Check that your contracts and legal documents with vendors, clients, and employees are up-to-date and compliant.

Resources + Links

• Brian Thompson Financial: Website, Newsletter, Podcast
• Follow Brian Thompson Online: Instagram, Facebook, LinkedIn, X, Forbes

About Brian and the Mission Driven Business Podcast

Brian Thompson, JD/CFP, is a tax attorney and Certified Financial Planner® who specializes in providing comprehensive financial planning to LGBTQ+ entrepreneurs who run mission-driven businesses. The Mission Driven Business podcast was born out of his passion for helping social entrepreneurs create businesses with purpose and profit.

On the podcast, Brian talks with diverse entrepreneurs and the people who support them. Listeners hear stories of experiences, strength, and hope and get practical advice to help them build businesses that might just change the world, too.