4 min read

Year End Banking Checklist for Businesses

Year End Banking Checklist for Businesses

For many businesses, planning for the next calendar year begins in the late summer or early fall. While this always seems to come so quickly – it is just over halfway through the year – it’s important that you give yourself and your team enough time to properly plan for the myriad financial considerations that come with the end of the year.

No matter what stage your business is at, I’ve put together a handful of areas you want to be sure are on your checklist to review as you begin planning for year-end and the upcoming year.

Tax Planning and Strategies

Tax Law Updates and the Impact on Your Business

Work with your trusted partners, such as a CPA or tax advisor to review the changes in the tax law and understand how they will affect your business.  This evaluation will help you determine your tax strategies including ways to save on your tax bill, when your taxes are due, and how you plan to cover your overall tax liability. Be sure to start this process early, as you don’t want to get down to the wire and realize you can no longer take the best approach forward.

Determine Purchases to be Made Before Year-End

If you anticipate major purchases that’ll need to be made early in the new year, determine if it is a good idea to buy them ahead of schedule so you can take the deduction in your current tax year. Remember to consider other options for obtaining equipment, such as leasing. No matter which route you take, significant purchases may impact tax planning and how you may address your tax liabilities.

Consider Year-End Bonuses or Extra Retirement Plan Contributions

Extra employee benefits, like bonuses and extra retirement contributions, are often a second thought for businesses. However, at this point, you likely have a good idea of how the company’s year will turn out, and what surplus funds will be available for this type of benefit. Consult with your trusted advisors to determine how or whether a year-end bonus could work for your business.

Evaluate Results and Prepare Goals

Compare Results to Projections

Early fall is a great time to start evaluating how the business is performing. Are you ahead or behind on your sales, profit and growth goals? What areas are you doing well in? Where could the business improve? When you review your margins, sales mix and customer base now, you’ll have the opportunity to begin making adjustments and start the next year off strong.

Prepare Your Budget for Next Year

Budgeting season gives you the opportunity to review your current objectives and plan your upcoming goals. Take a look at the financial needs involved in reaching those goals – is expansion or new equipment part of your business’s upcoming year? Consider whether you need to start conversations with your banker and get the ball rolling now.

Revisit Your Business Plan

Remember that your business plan should be a living, breathing document. Whether your plan covers the next three, five or 10 years, now’s the time to review the strategies laid out in your plan. Are they still in line with the direction your business is in? Will you reach your goals sooner than anticipated? If so, how will you make adjustments? As you review this document, one area that is very important to keep top of mind is succession planning. Make sure you’re involving the appropriate advisors and making the necessary plans now, as the most effective succession plans are the ones that are started early.

Next steps:

With these six areas to consider, and the many efforts your businesses is undoubtedly already undertaking, you should be well prepared to close out one year and start the next year off on the right foot. Here are three additional next steps that may help you in this process.

  1. If your business goals will require leasing or financing, start the conversation with Bankers Trust today.
  2. Learn more about your business’s finances with our resources, including our 15 business finance and management calculators.
  3. Contact me to learn more.
Travis Etchison

Travis Etchison

Vice President, Commercial Sales Manager Email Travis

A native of North Carolina, Travis Etchison joined Bankers Trust as Business Banking Manager in 2013. He was promoted to Commercial Sales Manager in 2017. After receiving his Bachelor of Arts from the University of North Carolina at Charlotte, Travis started his career as a business banker at Bank of America in Raleigh. He then worked at Capital Bank as a Commercial Lender before moving to Des Moines, where he worked as a business banking manager at Wells Fargo for eight years. Outside of the office, Travis serves as treasurer for Youth Emergency Services and Shelter and has served on its board since 2008. He is also a member of the Des Moines chapter advisory board for the Iowa Small Business Development Center. In his free time, Travis enjoys landscaping, wood working and spending time with his wife.  

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