With only a few days left in the year, focus on these critical actions to set yourself up for success in the new year.
1. Change All Passwords
Strengthen cybersecurity by updating passwords for email, financial platforms, and business software. Use unique combinations and a password manager to simplify tracking. Our team has used LastPass and 1 Password. These platforms can be used for personal passwords as well.
2. Reconcile Your Finances
Ensure your books are up to date. Cross-check your bank statements, credit card charges, and accounting software for accuracy. This allows you to gradually start the tax preparation early for next year.
3. Make Year-End Contributions
Maximize tax benefits by contributing to retirement accounts (e.g., SEP IRA, 401(k)) or charitable donations. Confirm deadlines to ensure your contributions count for this year.
4. Review and Pay Estimated Taxes
Assess your income and ensure all quarterly tax payments are submitted to avoid penalties. Consult your accountant if you’re unsure of any amounts due.
5. Assess Your Accounts Receivable
Send follow-up reminders to collect outstanding invoices. Resolve customer balances before year-end to improve cash flow.
6. Plan Tax Deductions
Make necessary purchases for your business (e.g., equipment, software) that qualify for deductions under Section 179 or bonus depreciation.
7. Verify Contractor and Employee Information
Confirm the accuracy of W-9s for contractors and W-2 information for employees to ensure a smooth tax reporting process.
8. Prepare for 1099 and W-2 Filing
Start compiling forms you need to send out in January. If using payroll software, confirm it’s set to auto-generate these forms.
9. Review Your Goals
Reflect on your business objectives and key metrics for the year. Identify areas for improvement and define priorities for Q1. Even if you did not make a goal this year, celebrate the forward progress you've made in your business.
10. Create an Organized Digital Backup
Safeguard important business records, including tax documents, contracts, and client data, by backing them up securely in the cloud.
Act now to finish the year strong and enter the new year with a solid foundation! Happy Holidays from the
DPILLC
team.
Feel free to schedule your 2025 consulting session with the DPI LLC team. Visit
DPI2.com
for more information.