10 End-of-Year (EOY) Questions for Businesses To Ask

As the calendar year draws to a close, many business owners are focused on finishing client work, managing operations, and preparing for the holiday rush. Tax planning can easily become an afterthought. However, postponing a review until filing season may mean losing access to planning moves that must be completed by December 31.

A thoughtful year-end review gives you time to confirm your records, identify potential deductions and credits, and make decisions using accurate financial information. For Metro Detroit business owners, PLW CPA PLLC provides proactive, year-round tax planning and accounting support designed to make the filing process more organized and less stressful.

1. Are Your Books Fully Up to Date?

Start by confirming that every business bank account has been reconciled. Current bookkeeping helps ensure that your financial statements reflect what actually happened throughout the year, rather than an incomplete or outdated picture of your operations.

Reconciliations can also uncover overlooked transactions, repeated entries, bank discrepancies, and possible unauthorized activity. Before making important business tax planning decisions, you need numbers you can trust.

2. Have You Evaluated Receivables and Unpaid Bills?

Review the money customers still owe your business as well as the invoices your business has not yet paid. Both sides of the ledger can affect the accuracy of your year-end financial statements and taxable income.

For outstanding customer balances, consider whether any accounts are unlikely to be collected. Depending on your accounting method and collection history, certain uncollectible debts may be eligible for a write-off.

Also verify that every supplier or vendor invoice has been entered into your accounting system. An unrecorded bill may mean a legitimate business deduction is missing from your records.

3. Have All Business Purchases Been Captured?

Company credit cards are often used for online orders, travel, subscriptions, software, and day-to-day operating purchases. When those charges are not posted to the books, financial reports may understate actual expenses.

A review of credit card activity before year-end helps make sure valid business costs are included. This improves bookkeeping accuracy while reducing the risk of missing deductions that could lower taxable income.

4. Do Your Records Accurately Show Assets and Debt?

Take a close look at equipment, vehicles, machinery, and other assets that were purchased, replaced, sold, or discarded during the year. Assets that are no longer in service should not remain on the books, since doing so can lead to incorrect depreciation and reporting issues.

Debt should receive the same attention. Confirm that business loans, vehicle financing, equipment notes, and lines of credit are properly recorded, including the allocation between principal and interest. Accurate allocations help ensure deductible interest is accounted for correctly and that the balance sheet remains reliable.

5. Have You Finalized Payroll-Related Items?

Payroll deserves careful attention at year-end. Review bonuses, commissions, retirement-plan contributions, health benefits, taxable fringe benefits, and employee reimbursements to make sure each item has been processed and classified appropriately.

Strong payroll records can help prevent corrected payroll tax filings, penalties, and avoidable administrative issues later. Businesses with employees benefit from addressing these details before year-end reporting deadlines arrive.

6. Could the Timing of Income and Expenses Help?

Year-end tax planning is not always about lowering this year’s tax liability in isolation. The most effective strategy depends on the business’s projected income, expected future earnings, and overall financial position.

For instance, a business expecting considerably higher income next year may benefit from accelerating certain deductible expenses into the current year. In other circumstances, a different approach may make more sense. Reviewing income recognition and expense timing before December 31 preserves choices that may no longer be available once the new year begins.

7. Are Retirement Contributions and Entity Choice Still Working for You?

Qualified retirement plans can create meaningful tax-planning opportunities. Depending on your entity type and plan design, there may still be time to maximize contributions to a SEP IRA, SIMPLE IRA, traditional 401(k), or another eligible plan.

Year-end is also an appropriate time to revisit whether your current business entity remains a good fit. As a company grows, hires staff, or broadens its services, another structure may offer improved tax efficiency. PLW CPA PLLC helps business owners in Sterling Heights and throughout Metro Detroit consider retirement planning and entity selection together, so potential opportunities are not reviewed in isolation.

8. Have You Reviewed Tax Law Updates and Potential Credits?

Tax rules change regularly, and legislation can affect strategies that worked well in prior years. A current review can help identify provisions that may create new opportunities or change the treatment of existing deductions.

Recent changes, including provisions associated with the One Big Beautiful Bill Act, have affected enhanced depreciation, the permanent Qualified Business Income deduction, business interest limitations, energy-related incentives, and other deductions or credits. Because the impact differs by business, a discussion with a CPA before year-end is important.

It is also worth reviewing available tax credits. Unlike deductions, which reduce taxable income, credits directly reduce the tax due. Depending on your operations, you may want to examine possibilities such as the Research & Development Tax Credit, energy-efficient building and clean-energy incentives, and the Work Opportunity Tax Credit. Qualification rules vary, so professional guidance can help determine what may apply.

9. Have You Reviewed Inventory, Technology, and Recurring Costs?

Many companies pay for cloud software, artificial intelligence tools, cybersecurity services, and recurring subscriptions. Review these costs to make sure they have been recorded correctly and to identify services that may no longer be useful to the business.

If your business carries inventory, examine goods that are damaged, outdated, expired, or slow-moving. Cleaning up inventory records produces a more accurate financial picture and may support appropriate write-downs when applicable.

10. Are You Prepared for Filing Season?

One of the best ways to make tax season easier is to organize supporting records before the year ends. Confirm that documentation is retained for income, expenses, payroll, loans, charitable gifts, asset acquisitions, and other significant transactions.

Businesses that make quarterly estimated payments should also revisit those payments. If income changed materially during the year, a year-end projection may reveal whether an adjustment is needed to reduce the chance of an unexpected balance due or potential penalties.

Finally, schedule a year-end planning conversation with your CPA or tax advisor. PLW CPA PLLC works with small business owners across Metro Detroit to review projected income, deductions, credits, and tax-saving strategies while there is still time to act. Waiting until tax-return preparation begins often means key planning opportunities have already expired.

Contact PLW CPA PLLC to discuss your year-end tax planning checklist and gain a clearer view of your financial position before the December 31 deadline. Our Sterling Heights team can help you identify planning opportunities, improve the accuracy of your books, and enter filing season with greater confidence.