Year-End Clean-Up and Planning for 2025

As the year draws to a close, it’s the perfect time to tidy up your financial records and prepare for the New Year. Whether you’re a tidying up your small business’s records, or just cleaning up your own budget, the end of the year is the perfect time to do it. Here are few tips to help you prepare those books!

Create a checklist

The first thing you should be doing to tidy up before the New Year is creating a list of all the documents you have and need. Having these on hand will be crucial and making sure they are in order will set you up for success. A good starting point is to look at a list of what the IRS typically requests when doing audits. This can include receipts or bills, legal papers, loan agreements, and more.

Confirm credit card statements with bank statements

Before the end of the year, make sure your credit card statements match up with your bank statements. Compare both, being sure the balances match up, addressing any incorrect charges.

Close out on any old or open accounts

Now’s the time to close out on any old transactions, accounts, or expenses that you’re no longer using. Be sure that any taxes are accounted or paid for.

Prepare payroll and tax documents

With the end of the year coming up, tax documents need to be sent out to any salaried employees by January 31^st. Now’s the time to ensure you have everything you need to send those out in time.

Double check balance sheet.

Make sure your balance sheet is up to date before tax season gets underway in a few months. Be sure any deductions or income is well documented and any other statements or transactions are available.

Create a budget

Now that you’re prepared for the end of the year it’s important to prepare for the coming year. Creating a budget to follow for the year will keep you on track with your goals. Be sure to create a space to track your spending and income. Don’t forget to build in an emergency fund to help with any unexpected expenses.

Separate needs and wants

Consider spending more mindfully by deciding what expenses are a necessity. Then you can take what’s left over to invest in your wants. This differentiation between the two can help in your budget, especially during the holiday season.

Look at profit and loss statements

Analyzing profit and loss statements from the previous year can help you create a more realistic budget for the current year. It can also help figure out what may need improvements or if funds need to be reallocated.

With the holidays coming to an end and the demanding New Year closing in fast, there is no need for your balance sheet to be in chaos. Planning and budgeting can help immensely in making this time of year less stressful. No matter what the issue, here at Bank of New Hampshire you’ve got people to help you through it, visit our Resources page for more helpful tips.