10 Essential EOY Questions to Strengthen Your Business

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. Below are ten questions that will help business owners finish out the year strong.

1. Should I Make Any Year-End Purchases?

Consider making strategic year-end purchases to reduce taxable income, especially if you're expecting a profitable year. This can help to optimize your tax strategy considerably.

2. Are My Bank Accounts Current?

Reconcile your bank accounts to avoid missing deductions and ensure accurate financial records. This process is essential for a clear financial picture.

3. Can I Collect My Open Receivables?

Uncollectible receivables can be written off, helping to clean up the books and avoid paying taxes on revenue you won't receive, thus saving you money.

4. Do I Have Any Old or Obsolete Inventory?

Write off old or obsolete inventory to free up storage space and eliminate unnecessary insurance costs, effectively managing your resources.

5. Did I Dispose of Any Assets?

Review asset disposals or sales and consider the tax implications, including write-offs or income from sales. This review could reveal potential write-offs you hadn't considered.

6. Have I Included All Unpaid Bills?

Properly record unpaid bills in accounts payable before year-end to avoid missed deductions, which could cost you come tax time.

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

Reviewing the general ledger is paramount to spotting errors that could lead to missed deductions or unrecorded transactions, affecting your bottom line.

8. Am I Missing Any Debt?

Verify any debt or financed purchases are properly recorded, including deductible interest payments, to ensure all financial activities are accounted for.

9. Have I Recorded All Credit Card Purchases?

Capture all credit card transactions to ensure all expenses are accounted for, which helps in avoiding missed deductions that add up over time.

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

Review payroll benefits like bonuses and retirement contributions to avoid complications with tax filings and ensure all benefits are properly documented.

By taking the time to address these questions, business owners can better prepare for tax season and pursue greater financial efficiency. We encourage you to conduct a thorough year-end review and suggest contacting our professional accounting firm for further guidance. Take charge, and close your year with confidence!