End of the Year Financial Checklist | Union Community Bank
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End of the Year Financial Checklist

As the year 2017 comes to a close, it’s time for businesses to take a look back at their year, figure out where they were successful, where they may have missed the mark, and start planning for the new year. To help your business better examine its progress, we’ve put together your end of the year financial checklist.

Business End-of-Year Financial Checklist

Figure out where your business is now financially

There are three important documents you need to prepare and examine better understand what kind of year you had financially: a balance sheet, a cash flow statement, and an income statement.

Balance Sheet

This is a summary of how your business did financially at a specific point in time. It will include:

  • Business assets
  • Business liabilities
  • Equities

Income Statement

An income statement tells you about your profitability, by itemizing your revenue and expenses. Income statements tell you if, at any given time, you’re making a profit or have a loss.

Cash Flow Statement

A cash flow statement shows you where your money has gone by reconciling your opening cash with your closing cash for a particular period of time.

List out and summarize your business’s cash inflows and outflows in these three areas:

  • Operating activities like revenue and expenses
  • Investing activities like purchased or sold assets
  • Financial activities including loans and loan repayments

Evaluate your goals from the past year

The end of the year is an excellent time to step back and think about how your business is progressing. Think about the goals you made this time last year. Did you meet them – why or why not? Make new goals for your business based on its performance over the course of the past year.

Prepare for Tax Season

Tax season is right around the corner, so it’s a good time to evaluate your current tax strategy and get your tax documents prepared. Work with your accountant or financial advisor to fill out forms including:

  • 1099s: These forms need to be mailed to any independent contractors you hired over the year no later than January 31
  • 1096: This form summarizes information returns being sent to the IRS and should be sent out no later than February 28
  • Payroll Forms: Your payroll forms like W-2, W-3, 940, and 941 need to be mailed. This should be done as soon as possible because your employees will need their W-2 in order to file their own taxes.

Employee Bonuses 

Your employees work hard for you all year long. If you’ve decided to reward them with end-of-year bonuses, don’t forget about tax. Bonuses are like regular pay and are subject to income withholding FICA and FUTA taxes.

Reconcile Accounts Receivable 

Are there any invoices that are still unpaid or clients that still owe you money for work that’s been completed? The end of the year is a great time to chase down those outstanding bills and try to collect.

Start Next Year with a clean slate

Paying your vendors in full is important to maintain a good relationship with them in the new year. Perform an internal audit to make sure that you have paid off vendors. While you’re at it, make sure that you still have all of the correct contact information for vendors to keep it organized for next year.

Bank with a Partner that’s Invested in U

Union Community Bank’s Business Banking team can help you start the New Year off right for your business. Contact us today to find out how.

Peter Miklos
Peter Miklos
Chief Lending Officer 717.928.2315 NMLS #810113 View My Profile
Mike Farina
Mike Farina
Business Banker, Lancaster 717.928.2383 NMLS #615577 View My Profile
Bob Bradfield
Bob Bradfield
Business Banker, Lancaster 717.928.2348 NMLS #360954 View My Profile
Mike Maurer
Mike Maurer
Commercial Loan Officer, Lancaster 717.928.2312 NMLS #456883 View My Profile
Craig Portner
Craig Portner
Commercial Loan Officer, Lancaster 717.928.2319 NMLS #456888 View My Profile
Deb Dupler
Deb Dupler
Business Banker, Lancaster 717.492.2238 NMLS #456874 View My Profile
Jeff Grove
Jeff Grove
Commercial Loan Officer, York 717.449.0860 NMLS #1254096 View My Profile
Chau Nguyen
Chau Nguyen
Commercial Loan Officer, Lancaster 717.519.9156 NMLS #1291841 View My Profile
Virginia Klingensmith
Virginia Klingensmith
Commercial Portfolio Manager 717.928.2313 NMLS #404960 View My Profile
Jeff Snyder
Jeff Snyder
Commercial Loan Manager, York 717.881.6959
Nathan Edmunds
Nate Edmunds
Commercial Loan Officer, Chester 267.565.9768 NMLS #1590306 View My Profile
Brady Barnes
Brady Barnes
Commercial Loan Officer, York 717-916-3313 View My Profile

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