Year-End Planning to Strengthen Your Business Operations

As the calendar year draws to a close, businesses have an opportunity to reflect, recalibrate, and prepare for the year ahead. Year-end planning isn’t just about closing the books — it’s a strategic moment to streamline operations, embrace digital transformation, and enhance your tax strategy.

Review opportunities your business can act on before December 31.

• Review revenue performance against expectations
• Assess vendor performance
• Assess departmental performance vs. payroll spend
• Review employee benefits
• Plan for seasonal support
• Focus on strategic relationships
• Include capital expenditure planning in financial reviews
• Explore tips for a successful year-end close
• Identify year-end tax moves for businesses
• Consider key digital initiatives
• Review personal tax and wealth planning

Year-end strategies to make your business more effective and efficient 

Sit down with your accounting and finance leadership to evaluate your organization’s year-to-date performance. Allow the results to inform a budget and vision for the next year.

1. Review revenue performance against expectations

Evaluate which streams of revenue have met expectations and why. Are there changes that need to be made (not necessarily to the price, but to the marketing or pricing packages available in the marketplace)?

Read the video transcript

Three possible areas to look at when you're reviewing performance and setting yourself up for next year: First is going to be revenue streams. And I will say throughout each one of these areas, the ability to utilize AI and the technologies that are coming out really allow you to save a ton of time.

When you're thinking through trying to tackle everything that you're focused on, closing strong, but also taking a moment to reflect and say, let's dig a little deeper.

So with the revenue streams, I always will say, look to see what you thought was going to happen — if you do budget, if you have revised budgets — compared to where you are, what are you trending, and what are you seeing?

I've seen some clients that I work with, and we utilize a lot of the different AIs within the systems to give us some flags in insights that we're seeing: what we thought was going to happen compared to what is happening. So we're removing that manual piece that our teams used to have to do and now being able to focus on, how are we going to solution to make this better?

And as you think through part of the revenue stream side of things, I would also encourage you to look at other departments: what is going well and help potentially them influence you as you think through what those different revenue stream levers could be to fix, correct, and potentially tweak.

2. Assess vendor performance

• Are they meeting expectations?
• Are they responsive?
• Are they adding value?
• Are they a strategic vendor?
• Are there better options available?

3. Assess departmental performance vs. payroll spend

Review the spend of each department versus output. Are they meeting expectations? Are your people spending time on manual processes your peers or competitors are starting to automate? Are there better options?

4. Review employee benefits

How is your current benefits package serving your employees? Are there unmet needs? Is your package competitive in the employment landscape of your industry? What strategies can you use to help set your organization apart?

5. Plan for seasonal support

If your business experiences seasonal spikes, consider outsourcing key departments or roles to handle increased demand without long-term commitments.

6. Focus on strategic relationships

Outsourcing isn’t about cost-cutting — it’s about finding advisors who can help you grow. Look for vendors who bring experience, innovation, and flexibility.

7. Include capital expenditure planning in financial reviews

Not all cash comes from or is used by the operation of the business. Were there known investments that kept cash from owners’ distributions, or was there a surprise when it came to Q3 distributions?

What capital expenditure strategies may need to be included in your annual cash flow planning? What balance sheet spend needs to be considered? Are there expansion plans in the works or new product launches to consider? Is there cash available to distribute?

Do you need to reinvest into the business — whether in large capital improvements or human capital? How are you evaluating the potential return on capital investments, and are you setting dates to re-evaluate previous investments?

Read the video transcript

Think of a manufacturer who needs to buy additional machinery to expand or to replace obsolete machinery. So not only itemizing out what the cash outlay and when you're expecting to make that cash outlay is important, but also how does that tie into the profit and loss statement?

How does that new machine, whether it's replacing an old one or expanding or a different type, how does that increase revenue or how does that affect cost of goods sold? Or if there's less manual intervention that's needed to support the machine or it takes less energy, how does that impact your expenses? So it's really important when analyzing the ROI on paper, in Excel, or whatever method you're using, to really try to link the capital expenditure with your profit and loss and how are you going to recoup that investment.

What is the return on that either through revenue growth or an increased valuation of your business? When we talk about capital expenditures, we sometimes jump to think fixed assets, things that you can touch and feel or buy and set into your business. But technology is becoming an increasingly important investment into your business.

And so similar to buying a new machine or to add a clubhouse to the property, you need to look at what is the cash outlay of the new software. If you need a new ERP system, how does that get implemented? What does it cost not only to buy the license but to pay the consultants or whoever is implementing it? How long does that take? And then what does that mean from a profit and loss standpoint? Are you more efficient with how AP is entered or how AR is managed or how quickly you can reconcile the balance sheet?

It's really important to try to link as much as you can from that cash outlay to how it affects both your profit and loss statement but also the exit value of your company as well.

8. Explore tips for a successful year-end close

Year-end close is an important process to wrap up the books and mark the turning point of moving to the 2026 budget. It’s a great opportunity to analyze the past 12 months, as well as get a clean set of books to your tax providers.

Start with a timeline and schedule. Reconcile the prior year’s retained earnings, cash and credit card transactions, and all balance sheet accounts.

Take inventory and do a fixed asset physical count to clean up the fixed asset list. Review any new debt and equity arrangements, as well as new leases started in the last year.

After the year-end close is completed, present the data to key stakeholders, finalize any year-end targets and incentives, and send tax data to your CPA. Start planning for next year by staying up to date on industry news, finding relevant trade publications, and incorporating any changes into your budget.

Get started closing the year strong with a year-end planning checklist.

9. Other considerations

• Make sure you have a Form W-9 for all applicable vendors.
• Update contact information for all employees.
• Start with the end in mind. If you’re looking to sell or transition your business in the next one to seven years, work toward achieving financial benchmarks that can help improve sale results.
• Did you have a tax planning call? Based on current-year performance, do you need to adjust quarterly estimated tax payments?

Make year-end planning count. Get actionable strategies to help set your business up for success in the new year. Join our complimentary webinar.

Year-end tax moves for businesses

Year-end tax planning isn’t just about savings — it’s a chance to align your financial strategy with your business goals. Strategic tax planning now can help position your business for stronger growth and smoother operations in the new year.

• Explore timing of fixed asset purchases
• Evaluate entity structure
• Weigh accounting method changes
• Accelerate expense payments
• Create a strong tax credits and incentives strategy
• Harvest tax losses
• Prepare for legislative changes, including recent tax changes resulting from the One Big Beautiful Bill Act

Key digital initiatives to consider before year-end

Digital solutions can simplify year-end processes, improve accuracy, and provide insights you need to make informed decisions going into next year.

1. Automate routine processes

Look for opportunities to automate payroll, invoicing, expense tracking, and reporting. Automation can reduce errors and free up time for strategic work. AI-powered tools can take this further by learning patterns, flagging anomalies, and even generating predictive insights — helping you make smarter decisions faster.

2. Strengthen cybersecurity

Year-end is a smart time to review your IT infrastructure and security protocols. Conduct a cybersecurity readiness assessment, update software, and check that backups are in place.

3. Leverage data for decision-making

Use analytics tools to review performance metrics, customer trends, and operational efficiency. Data-driven insights can guide your strategy for next year.

Need a boost? Consider implementing or enhancing cloud-based accounting platforms like Sage Intacct or QuickBooks. These tools improve visibility, automate reporting, and support remote collaboration.

Personal tax and wealth planning considerations

Year-end is a strategic time for individuals to review personal tax and financial plans. Taking action now can help you enhance your tax strategies, avoid surprises, and set yourself up for long-term financial success. Consider these moves.

• Revisit investment and wealth planning
• Solidify estate and gift planning
• Consider Opportunity Zone investments
• Prepare for 1099 season

How CLA can help with year-end opportunities

Year-end planning is more than a compliance exercise — it’s a strategic opportunity to position your business for success. Address operational strategies, digital plans, and tax planning so you can enter the new year with clarity, confidence, and momentum.

CLA’s experienced accounting and advisory professionals can help you uncover planning opportunities tailored to your business needs — from finance and accounting support to project-based consulting. Schedule a year-end strategy session with our team for deeper insights.

Contact us

Take advantage of potential year-end planning opportunities. Complete the form below to connect with CLA.