October is the ideal time to start finalizing your financials, making sure nothing gets overlooked as the year ends. For many small businesses, the last quarter is a rush - but with proper planning and proactive measures, you can finish strong and set yourself up for success in the new year.
Why Start in October?
- Gives you buffer time to address gaps or errors
- Lets you strategize for tax planning & savings
- Reduces stress in December and January
- Helps you forecast cash flow into the new year
1. Reconcile & Clean Up the Books
- Go through bank reconciliations and ensure all transactions are categorized
- Address discrepancies, missing invoices, or duplicate entries
- Check for uncleared checks or deposits and follow up
2. Review Accounts Receivable & Payables
- Identify overdue invoices — send reminders or follow up
- Negotiate vendor payment terms if necessary
- Decide which bills need payment before year-end
3. Evaluate Inventory & Asset Depreciation
- If you hold inventory, perform counts, and verify records
- For fixed assets, review depreciation schedules and useful lives
- Consider write-offs or disposals, if needed
4. Assess Your Tax Position
- Estimate your year-end tax obligations
- Explore deductions or credits you may qualify for
- Make decisions about bonus payments, retirement contributions, or capital expenditures
5. Plan for Bonus, Raises & Benefits
- If offering year-end bonuses, budget for them now
- Review any benefit programs or insurance renewals
- Communicate plans with your team in advance
6. Forecast Cash Flow & Budget for Next Year
- Build a projected budget for Q1 (or full next year)
- Identify potential cash shortfalls or surpluses
- Plan investments or expansions accordingly
By starting your year-end preparations in October, you’ll reduce last-minute stress and gain strategic control over your finances. If you’d like help building or executing a customized year-end checklist, ShoreSource Business Solutions is here to help — reach out to discuss how we can support your business’s wrap-up and planning.
