What You Should Be Doing Financially in Your Business in the 4th Quarter
The fourth quarter isn’t just about closing out the year, it’s about setting your business up for success in the next one. For small business owners, the last three months of the year are a prime opportunity to tidy up your financials, maximize tax savings, and create a clear plan for growth.
Here’s a 4th quarter financial checklist for small businesses.
1. Review Your Financial Statements
Before you wrap up the year, take a close look at your profit and loss, balance sheet, and cash flow reports.
Ask yourself:
Are revenues in line with projections?
Are expenses higher than expected?
Do you have outstanding invoices or unpaid bills?
A CPA can help you analyze these numbers and identify opportunities to improve before year-end.
2. Catch Up on Bookkeeping
Don’t wait until tax season to reconcile your books.
Use Q4 to:
Match bank and credit card statements
Categorize expenses properly
Ensure receipts and invoices are filed
Staying caught up avoids errors, reduces tax prep stress, and helps you plan ahead.
3. Plan for Taxes Now
Q4 is the last chance to make moves that lower your tax bill.
Consider:
Maximizing deductions (supplies, equipment, professional services)
Reviewing retirement plan contributions
Making charitable contributions before year-end
Checking estimated tax payments
A proactive tax review with your CPA now means no surprises in April.
4. Evaluate Cash Flow and Budgeting
Healthy cash flow is key to starting the new year strong.
In Q4:
Review collections and follow up on overdue invoices
Forecast cash needs for the first quarter of next year
Adjust your budget based on actual results from this year
Strong planning now prevents a rocky start in January.
5. Revisit Payroll and Employee Benefits
Year-end is the time to:
Verify payroll records are accurate
Issue bonuses, if planned
Review benefit programs (health insurance, retirement plans)
Ensure W-2s and 1099s will be ready to go on time
6. Set Goals for the New Year
Financial planning is about looking forward.
Use Q4 to:
Define revenue and profit goals
Align budgets with growth plans
Establish KPIs (key performance indicators) to measure progress
The fourth quarter is your opportunity to finish strong and step into the new year prepared. By reviewing your financials, planning for taxes, and setting clear goals, you’ll start January strong, instead of scrambling to catch up.
At Ciaccia CPA, we help small business owners turn year-end financial tasks into a strategy for long-term growth.
