Year-End Financial Checklist and Services to Review before Welcoming 2024

Have you secured a financially sound year-end for your business before moving into 2024? As the calendar year draws to a close, businesses should start preparing for the upcoming tax season. A lot seems to have changed in the past 12 months economically, especially the burden of inflation going down. 

But, how has all of this affected your business?

Taking proactive steps now can not only help to save money in the long run but can also reduce stress in the future. To assist businesses in preparing for the new year, here is a financial checklist of the most important steps to take before entering 2024.

Tick Off These 5 Things on Your Year-End Financial Checklist before Entering 2024

Here are 5 important points in your financial checklist to look into before ending the year:

Partner Agreements: When was the Last Time You Reviewed Them

Partnerships are the backbone of many successful businesses. However, as circumstances change, so should your partnership agreements. If you have a partnership agreement, it is a good idea to review it every year to see if there are any changes to the laws or taxes that need to be taken into account.

You should also review it every time one partner leaves or a new one joins the business. Take the time to review and update the agreements, ensuring they reflect the current state of your business and the responsibilities and expectations of each partner.

Key Man Insurance Policy: Is it Up-To-Date

Key man insurance is vital to safeguard your company from the financial repercussions in case of the loss of a key employee. If it has been some time since you last reviewed your key man insurance coverage, now is the appropriate time to review it.

Ensure that the coverage amount remains reasonable and the key individuals specified in the policy are accurately reflected. For instance, review the following information: The number of insured employees, the amount of coverage each employee is entitled to, and whether the employee has consented to the policy.

Retirement Plans: Have You Reviewed Them Lately

When it comes to employee benefits, retirement plans are one of the most important things you can do to attract and retain top talent. Take a look at your 401(k), 403(b), and other retirement plans to see if they are competitive and meet your employees’ needs.

Additionally, review the life insurance coverage, to ensure that they are competitive, meet the requirements of your employees, and are cost-effective. Remember to review other benefits that raise employee morale like disability insurance, paid time off, employee recognition and rewards, etc.

Business Loans and Credits: Are Your Repayments On Track

With interest rates and the economy going up and down, it is a good idea to take a look at your business loans and credit. See what the terms are, what the interest rate is, and what the financial impact is of these loans.

In addition, look for ways to re-finance or change terms to better fit your business objectives. Consider alternative options of financing, including lines of credit and equipment financing, as well as merchant cash advances, to better match your business requirements and cash flow cycles.

Cost of Services: Are They Optimized

Conduct a thorough analysis of your business expenditure. This may include office lease renewal costs, telephone costs, credit card costs, and other services that are essential for running your business.

You can identify areas of expenditure that can be reduced without compromising on quality or productivity. Consult with vendors and look for alternative vendors to optimize your expenditure.

Final Words

As the end of the year approaches, it is essential to take the necessary steps to protect your business from financial uncertainty and to prepare for a more organized and successful future. 

The end of the year is not just a time to reflect. It is also a time to prepare for the future. Do not wait until it is too late

Moreover, for better planning and strategy for the upcoming year, you should consult a financial advisor. In case you are a company in search of HR, employee benefits, and compensation services, contact us. You can also check out our blog section to find more related articles. 

Reference Links

https://www.cavanaghkelly.com/news/the-importance-of-having-a-written-partnership-agreement#:~:text=Ideally%20partnership%20agreements%2C%20like%20wills%2C%20should%20be,or%20a%20new%20partner%20joins%20the%20business.

https://lattice.com/library/what-are-employee-total-rewards-and-why-should-your-company-implement-them

https://use.expensify.com/resource-center/guides/end-of-year-financial-checklist-for-small-businesses