Wrapping Up Your Finances for Year-End: A Guide for Business and Personal Success

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As the year wraps up, now is the perfect time to get your finances in order—both for your business and personal life. Taking action now can save you a lot of stress, make tax season a breeze, and set you up for a successful 2024. Here’s how to close out the year, why scheduling a meeting with your tax advisor is key, and what to know about the 2024 retirement contribution limits, backed by some key stats and expert insights.

1. Business Finances: Closing the Books and Preparing for Tax Season
Year-end is a critical time to evaluate your business performance, get organized for taxes, and set your goals for the next year.

• Review Your Income and Expenses: Make sure your accounts are reconciled and every transaction is categorized correctly. Using tools like QuickBooks, Xero, or Wave makes this process much easier. These tools automate your financial records, helping you streamline everything from invoicing to expense tracking. Over 29 million small businesses in the U.S. rely on accounting software to manage their finances, with QuickBooks leading the pack by supporting over 62% of small businesses.
• Plan Your Tax Strategy: Before the year closes, schedule a meeting with your tax advisor. This ensures you're capturing all potential deductions, tax credits, and savings opportunities. A survey by Wells Fargo found that 68% of small business owners feel more confident about their financial health after consulting with a professional. A quick review with your accountant can also uncover potential tax-saving opportunities, like capital expenditures or retirement contributions, before it’s too late. Given that 32% of small business owners report taxes as their biggest financial challenge, according to the National Small Business Association, this meeting is critical to staying ahead.
• Set Goals for the Next Year: Use your year-end financial reports to assess cash flow, profit margins, and other key metrics. Xero and other accounting platforms offer detailed reporting and forecasting features, giving you a clear path for 2024.

2. Personal Finances: End-of-Year Check-Up
Year-end is also a good time to review your personal finances, adjust your budget, and plan for a financially secure 2024.

• Review Your Budget: Look back at your spending habits and savings progress. If you haven’t already, consider using a budgeting app like Monarch, which helps you track your income, expenses, and savings goals in real-time. Apps like this are gaining popularity—studies show that 70% of Americans who use budgeting apps feel more in control of their finances, according to a report by CNBC.
• Maximize Retirement Contributions: Be sure to take advantage of the increased retirement contribution limits for 2024. The IRS raised the maximum 401(k) contribution limit to $23,000 for those under 50, and $30,500 for those 50 and older, thanks to an additional $7,500 catch-up contribution. For IRAs, the 2024 contribution limit is $7,000 for those under 50 and $8,000 for those 50 and older. Maxing out these contributions before year-end not only lowers your taxable income but also helps ensure long-term financial stability.
• Tackle Debt: If you’re carrying high-interest debt, consider paying it down before the year ends. Getting your debt under control helps free up more money for saving and investing in the new year.

3. Consulting a Professional: Why It's a Smart Move
Even if you’re confident about your financial situation, a year-end consultation with a tax advisor is always a good idea. Professionals can help spot tax-saving opportunities and ensure that your filings are compliant with the latest IRS regulations.
A study by the National Association of Small Business Owners found that 44% of small businesses hire tax professionals to avoid costly mistakes during tax season. For business owners, this could also mean identifying new tax-saving opportunities such as depreciation, capital investments, and retirement contributions.
For personal finances, a meeting with a financial planner can ensure you’re taking full advantage of retirement savings options and preparing for a secure future.
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4. Financial Tools to Keep You Organized
Using the right tools can make managing your finances—both business and personal—easier than ever. Here are a few top options:

• QuickBooks: The most popular accounting software, automating everything from payroll to taxes for businesses of all sizes.
• Wave: A free option ideal for freelancers and small businesses, handling invoicing and accounting with ease.
• Xero: Known for its flexible features and detailed reporting, especially loved by accountants.
• FreshBooks: Perfect for service-based businesses, offering time-tracking and invoicing features.
• Monarch: A personal budgeting app that helps you track your finances, debt, and savings goals with ease.

These tools, combined with advice from a professional, will help you stay organized and set you up for financial success in the new year.

Final Thoughts
As the year ends, getting your finances in order is crucial for both your business and personal life. Scheduling a year-end meeting with your tax advisor, using tools like QuickBooks or Monarch, and taking advantage of 2024’s new retirement contribution limits are all smart moves. A little organization now can save you from stress during tax season and help you start the new year strong. Get ahead today, and you’ll thank yourself when the new year rolls around!
For more on year-end financial planning, check out Forbes’ guide to year-end financial moves that outlines practical steps to make the most of tax-saving opportunities and start the year off right.