Year-end financial tips: setting the stage for success in 2024

As the year draws to a close, The Finance Team extends its warm wishes for a successful and prosperous year for your company. With 2024 just around the corner, it’s time to ensure that your financial house is in order and that you’re well-prepared for the challenges and opportunities that the new year will bring.

Here are some must-dos to help you wrap up the year on a strong note:

1. Take account of your accounts

Begin by addressing any outstanding accounts. If you find yourself with numerous accounts payable overdue by 90 days or more, consider enlisting the help of a collection agency to streamline the recovery process. Write off bad debt and meticulously close your books for the year. Ensure that all expenses are accurately entered into your accounting system, meticulously recorded and appropriately classified to avoid complications in the upcoming financial year.

2. Stay up to date on your tax records

For sole proprietors and simple businesses, staying up to date on your tax records is not just a regulatory obligation; it’s a strategic move. Knowing your financial standing allows you to make maximum contributions, qualifying you for the maximum allowable tax deductions in areas such as retirement funds and charitable contributions. Accurate financial statements also lay the groundwork for seamless tax return preparation in the next tax season.

3. Performance reviews

End-of-year performance reviews are essential for evaluating various aspects of your company’s performance.

• Internal performance: assess your company’s financial performance, including revenue, gross margin and profit. Review the effectiveness of internal strategies employed throughout the year, preparing your company for the challenges ahead.
• External relationships: evaluate relationships with vendors, partners and customers. Ensure that these connections are mutually beneficial and align with the goals of both parties.
• Employee performance: while we advocate for more frequent performance assessments, the end of the year is an appropriate time to review employees’ accomplishments against their goals.
• Personal performance: take a moment to reflect on your own performance. Assess personal and business goals, considering areas for improvement and development. This self-review is integral to personal growth and success in the upcoming year.

4. Seek assistance from The Finance Team

To navigate the year-end rush and ensure your financial house is in order, consider reaching out to The Finance Team.

Our part-time and interim Financial Executives are ready to assist you with expertise and efficiency during busy periods such as year ends.