As we wrap up 2024, completing key year-end tasks will help ensure your business starts the new year strong. Closing out isn’t just about compliance. It’s about preparing for clarity, growth, and peace of mind in 2025. Here are three critical steps every business owner should take before the year’s end.

1. Get a Head Start on 1099 Preparation

For businesses that work with contractors, 1099s are essential for year-end compliance. These forms aren’t due until January, but handling some prep work now will help you enjoy a smoother start to the year. 

Begin by ensuring you have current W-9 forms, a complete list of who needs 1099s, and up-to-date contact information for each contractor. When it’s time to file, just like that, your bookkeeper will be ready to calculate total payments and submit the forms on time. Completing this groundwork lets you focus on your larger goals for 2025 without getting bogged down by paperwork.

2. File Your Beneficial Ownership Information Report with FinCEN

This year brings a new requirement for most small business owners: the Beneficial Ownership Information (BOI) Report. This report is filed through FinCEN and gives the government insight into small business ownership structures. Keep in mind that your BOI report is due by December 31st, and because this report is new, its ownership falls in limbo. This filing will very likely fall to you, the business owner—not your CPA, bookkeeper, or lawyer.

The process is straightforward and accessible through the FinCEN website, so don’t overlook this requirement. Trust me, they mean business when it comes to your business. Unfortunately, penalties for late filing can possibly reach up to $500 per day. For this reason, getting this report in now keeps you compliant and clears the way to focus on your business goals for 2025.

3. Estimate Your Tax Burden & Prepare for Final Payments

Final quarterly estimated tax payments are due in January. Calculating your tax obligation now can help you avoid tax payment surprises. No one wants to start their new year with a financial obligation for which they were unprepared.

Suppose your income has fluctuated or you’ve missed any prior payments: this is your chance to get current and avoid IRS penalties. Your CPA can help with any calculations and adjustments. Remember that staying proactive about these tax obligations lets you enter 2025 with clear financial expectations and peace of mind.

Final Thoughts: Year End Habits That Pay Off

Alongside these three tasks, two additional steps can help solidify healthy year-end habits. While we hope you’re already making them routine, a quick reminder could be helpful:

  • Set Up Next Year’s Financial Plan: Use insights from 2024 to set clear revenue and expense targets, outline cash flow expectations, and create a Q1 budget. This forward-focused planning ensures that you enter 2025 with motivation and purpose.
  • Evaluate and Maximize Year-End Tax Deductions: Deductions on year-end purchases, like equipment or supplies, can reduce your taxable income. A quick check-in with your accountant could identify strategic tax-saving investments before year-end.

A Confident Close to 2024

So let’s do it! Completing these steps allows you to end your 2024 business year and set a solid foundation for 2025. With 1099 prep, FinCEN compliance, and tax planning checked off, along with your regular financial review and planning, you’ll be ready to start the year ahead.

And remember, if 2025 planning feels like a challenge, we’re here to help build a financial strategy to support your growth. Reach out to explore how we can help make this your best year yet! Book a call today!