Top 10 Considerations for Successful Year-End Planning

November 22, 2019 | Article

Year-end is often a busy time of year for many business owners. Not only are you working to get your financials in order, you’re also evaluating the numbers, measuring success and exploring opportunities to grow your business. It can be overwhelming, to say the least.

Yet year-end is about so much more than just your financial statements. Here are a few key considerations (and helpful resources) as you prepare for a successful year-end.

Ten Considerations to Make When It Comes to Year-End Planning

  1. Tax Compliance: Are you prepared to file your individual and business tax return on time? Have you considered how tax reform can continue to impact your situation? Do you have over 50 full-time equivalent employees? If yes, have you filed the appropriate 1094 and 1095-C forms?

Dive Deeper: Affordable Care Act Misconceptions

  1. Technology: Have you recently reviewed your technology needs and whether your current software systems are up-to-date and giving you the information you need? Do you need to explore additional options? Technology is innovating faster than ever, but many businesses’ ERP implementations are stuck in the past.
  2. Dive Deeper: 8 Ways Legacy ERP Harms Businesses

  1. Cybersecurity: Have you adequately protected your systems, data and business reputation? Have you adequately identified the cyber threats your business may face? Have you prepared proper training for your staff to prevent a cybersecurity threat?

Dive Deeper: Free Cybersecurity Risk Assessment

  1. Data Analytics: Are you able to use your data to make informed decisions? Can your company make sense of its data chaos? Do you have the proper access to your data? Do you know the source of your current data and the health of that information?

Dive Deeper: 5 Step Process to Start Your Data Journey

  1. Human Resources: How are you evaluating and measuring the success of your employees? Do you have a performance management system in place? Do you have an employee manual? Do you follow best recruitment and retention practices?

Dive Deeper: Elements of a Successful Recruitment Strategy

  1. Wealth Planning: Are your tax and investment decisions working together? Do you know the tax impact of liquidating one asset versus another? Do you have an investment strategy? Do you have the right insurance coverage in place? Have you thought about the type of legacy you would like to leave? Understanding your wealth and planning for your financial future are important. 

Dive Deeper: 7 Steps to Creating a Successful Succession Plan

  1. Retirement Plans: Have you reviewed your company’s retirement plan? Have you reviewed the proper reporting requirements based on the size of your plan and its participant numbers? There are many things to consider depending on the size and anticipated growth of your business.

Dive Deeper: Retirement Plans for Small Business

  1. Outsourcing Needs: Have you evaluated whether now is the time to outsource your payroll and bookkeeping services? Have you considered whether hiring an outsourced CFO partner could help you grow your business? There’s lots to consider when it comes to the financial and accounting portion of your business.

Dive Deeper: Behind the Financial Metrics Series

  1. Exit Planning: Have you thought about selling or acquiring a new business? Have you considered the tax implications of a sale/purchase? We encourage business owners to consider options at least five years before they intend to sell, if not 10. The more time you have to adequately plan for a sale, it’s likely the better price you will get.

Dive Deeper: Exit Strategy: Transitioning Your Business to a New Owner

  1. Fraud: Do you have suspicions about potential fraud in your organization? Do you have the appropriate checks and balances in place? Have you done a review of your internal controls to ensure you’re keeping your business protected?

Dive Deeper: How Forensic Accounting Uncovers the Secrets of Fraud

The Importance of a Broad Approach to Year-End Planning
As you can see, there are many things to consider at year-end. Not only do you have a massive amount of paperwork in your 1099s and W-2s, you must consider tax planning, compliance and the overall health of your business. Stepping back to review common practices and asking the right questions can position your business for success beyond just year-end planning time.

Year-End Planning

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