Q4 Business Checklist: Essential Year-End Tasks for Small Business Owners
We’re in Q4, folks, the home stretch! As a business owner, you know that this is when things get real. The holidays are coming, year-end deadlines are looming, and it feels like there are a million things demanding your attention. But if you don’t get your shit together now, you’ll be paying for it next year (literally).
So, what should be on your year-end to-do list? Let’s break down the essential tasks to wrap up 2024 right and start the new year without that “Oh crap, I forgot something” feeling.
1. Did You Make All Your Estimated Tax Payments?
If you’re sitting there thinking, “Wait, what estimated tax payments?” Then this is your wake-up call. The IRS doesn’t just want your money in April; they want it they want it all year long in the form of quarterly estimated payments. If you have fallen behind, you could be hit with penalties when you file your return.
Why This Matters
Missing your quarterly tax payments isn’t just about facing a higher tax bill in April, which adds up fast. If you’re running a profitable business, the IRS expects you to stay on top of those payments.
How to check
Review your payment records and compare them to your income. If your revenue changed significantly this year, you might need to adjust what you pay in Q4 to avoid underpayment penalties. Unsure? Chat with your CPA or Bookkeeper for guidance. (Shameless plug if you do not have a bookkeeper or a CPA please reach out before we all get too busy!)
2. Review Your Books — Yes, Again
I get it, reviewing your books isn’t exactly thrilling, but it's non-negotiable, especially as year-end approaches. Knowing where your business stands financially is a must, especially as we head into tax season.
Reconcile accounts
Make sure all your bank and credit card statements match up with your records. If there are any discrepancies, now’s the time to figure out why. It could be a missed expense or even a client payment you forgot to record.
Review your P&L (Profit & Loss)
Your P&L statement is like a report card for your business. Are you profitable? If not, where’s the money going? Reviewing this will help you understand if you need to make any adjustments before the year closes.
Clean up your expense
Go through your expense categories and make sure everything is correctly categorized. This will save you a massive headache come tax time. Make sure to look for any recurring charges you don’t need. Now is the time to cut those unnecessary costs.
If this feels overwhelming, that’s what good bookkeepers are for. If you are drawing in receipts and transactions, now is the time to get someone to support you.
3. Talk to Your CPA — Don’t Wait Until Tax Time
If you only talk to your CPA once a year when it’s time to file taxes, you’re missing out. Q4 is the perfect time to check in and see if any adjustments are needed before the year ends.
Tax Planning
A good CPA will help you reduce your tax liability, but you need to talk to them before December 31st… honestly, reach out before October ends, this isn’t something to push off. If you’ve had a killer year, there might be opportunities to lower your taxable income—whether that’s through smart investments, buying new equipment, or upping your retirement contributions.
Estimated payments check-in
As I mentioned earlier, making sure your estimated tax payments are on track is crucial. Your CPA can run the numbers and let you know if your payments need a boost to avoid a nasty surprise come April. If you don’t have a CPA, please reach out. We’ve got some great referrals for you!
4. Set Up (or Review) Your Retirement Contributions
Let’s be real: retirement can feel like a far-off dream when you’re knee-deep in running your own business. But here’s the thing—you need to plan for it and now’s the time. Contributing to your retirement accounts before the year ends isn’t just a smart move, it can also lower your taxable income.
Have a SEP IRA or Solo 401(k)?
These are great options for if you are self-employed or a small business owner. If you haven’t made contributions this year, make sure you’re setting aside money before December 31st.
Maximise Contributions
If you’re sitting on extra cash and want to reduce your tax bill, max out those contributions. Again, make sure to talk to your CPA or financial advisor to see what makes sense for your situation. (Need help setting up a 401(k), SEP, or need a financial planner? I’ve got some killer referrals for you!)
5. Check Your Cash Flow — Are You Ready for the Slow Season?
Q4 might be booming for some businesses, but for others, the new year brings a dip in sales. That’s why you need to review your cash flow now.
Look ahead
Do you have enough cash to cover expenses during the slower months? If not, what steps can you take to up your cash flow before year-end? Consider offering a prepayment discount or launching a flash sale to get more cash flowing in.
Cut unnecessary expenses
If your cash flow is tight, review your expenses. Are there subscriptions or software you’re barely using? Now’s the time to cut the fat.
Fucking SAVE
Yep, I said it. EVERY business needs a savings account, an emergency fund, a buffer, or whatever you want to call it. Just like in your personal life, you (hopefully) have savings. No judgment here if you don’t, but here’s your reminder to start somewhere. Having a cash cushion for unexpected expenses or slow sales months is crucial to keeping your business afloat. (Don't know where to start? Beckie the founder of Balanced Office Solutions can help with this! Now is the time to reach out!)
6. Review Your Business Goals — Are You On Track
Remember those ambitious goals you set back in January? Well, now is the time to check in and see how you’re doing. Whether it’s revenue targets, new product launches, or team expansion, now’s the time to assess where you stand.
Did you hit your targets
If you’re falling short, take a look at why. Is it a lack of sales? Too much overhead? Understanding where you missed the mark will help you adjust your strategy for 2025.
Celebrate your wins
On the flip side, don’t forget to celebrate the wins and recognize the progress you made this year! If you’ve hit a major milestone, give yourself (and your team) a pat on the back. Running a business is hard, and it’s important to acknowledge how far you have come.
7. Set Your Budget for 2025
Year-end isn’t just about wrapping things up—it’s about planning for what’s next. If you don’t have a budget in place for 2025, now’s the time to build one.
Revenue projections
Be real with yourself about how much you expect to bring in next year. Use your 2024 numbers as a baseline but factor in any upcoming changes, like new products, services, or shifts in the market.
Expense planning
Separate your non-negotiable expenses (payroll, rent, utilities) from your “nice-to-haves” (marketing, new software). Knowing where your money needs to go will help you plan for any slow months.
8. Take Some Damn Time Off
You’ve worked your ass off all year and now is the time to take a break. Don’t feel guilty about taking some time off during the holidays. Rest is important—not just for you, but for your business. If you’re burnt out, your business will suffer too.
Delegate and automate
If the thought of stepping away from your business for a few days makes you panic, set up a system and delegate your tasks so things can run smoothly while you’re out. You deserve a break, and you’ll come back recharged and ready to hit the ground running in 2025.
Q4 is crunch time for business owners. Between taxes, cash flow, and year-end planning, it can feel overwhelming. But if you stay on top of these tasks now, you’ll thank yourself come tax season and beyond.
Make your estimated tax payments, scrutinize your books, and have those key conversations with your Bookkeeper and CPA. Don’t wait until the last minute—handle your business now, and you’ll walk into 2025 ready to crush it.
And for fuck’s sake, take some time off. You’ve earned it.
Ready to tackle your year-end checklist and start 2025 strong? Book your free consultation now and we will help you get your shit together.
