10 Essential EOY Questions for Business Success

Many business owners find themselves juggling multiple tasks at the end of the year as they try to close out their financials. Asking the right end-of-year (EOY) questions can reduce stress, help clean up their books, and even uncover tax savings. Here are ten questions that will help business owners finish out the year strong.

1. Have I Recorded All Credit Card Purchases?

Capturing all credit card transactions ensures all expenses are accounted for, avoiding missed deductions. Missing out on these details can lead to erroneous financial reports.

2. Can I Collect My Open Receivables?

Uncollectible receivables can be written off, which helps clean up your books and prevents you from paying taxes on revenue you won’t ever receive.

3. Have I Included All Unpaid Bills?

Making sure unpaid bills are properly recorded in accounts payable before year-end can help in realizing potential deductions that may otherwise be overlooked.

4. Are My Bank Accounts Current?

You should reconcile bank accounts to avoid missing deductions and ensure your financial records are accurate and error-free. This saves you from the hassle of correcting these issues later on.

5. Should I Make Any Year-End Purchases?

Making strategic year-end purchases can be a smart move to reduce taxable income, especially if your business is expecting a profitable year.

6. Am I Missing Any Debt?

It's crucial to verify that any debt or financed purchases are properly recorded, including deductible interest payments. This can influence your business's financial strategy moving forward.

7. Have I Included All Payroll Benefits for the Year?

Reviewing payroll benefits such as bonuses and retirement contributions before the year ends prevents complications with tax filings later.

8. Did I Dispose of Any Assets?

Reviewing asset disposals or sales is important for understanding tax implications, including potential write-offs or income from sales.

9. Do I Have Any Errors in My General Ledger (GL) Accounts?

Checking your general ledger for errors can prevent missed deductions and ensure all transactions are recorded, avoiding potential setbacks in financial planning.

10. Do I Have Any Old or Obsolete Inventory?

Writing off old or obsolete inventory can help free up storage space and eliminate unnecessary insurance costs, directly impacting your bottom line.

Taking action on these questions empowers business owners to prepare for tax season, reducing unnecessary stress and ensuring no opportunities are missed. Consulting with a professional accounting firm can provide further guidance and help you close out your year with confidence.