• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

29-Year-Old’s Salty Side Hustle Hit $10 Million Last Year

September 16, 2025

Here Are the Top 50 Mistakes I’ve Seen Kill New Companies

September 16, 2025

How People Are Using ChatGPT: OpenAI Study

September 16, 2025
Facebook Twitter Instagram
Trending
  • 29-Year-Old’s Salty Side Hustle Hit $10 Million Last Year
  • Here Are the Top 50 Mistakes I’ve Seen Kill New Companies
  • How People Are Using ChatGPT: OpenAI Study
  • Why Education Is A Lifelong Investment
  • 3 Popular Perks That Southwest Airlines Is Ending for Good — and 6 New Upgrades
  • 7 Tips for Maximizing Your Social Security Benefits
  • TikTok Deal Is Imminent, President Donald Trump Says
  • Google Parent Alphabet Reaches $3T Market Cap
Wednesday, September 17
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » 6 Common End-of-Year Financial Mistakes Entrepreneurs Make
Make Money

6 Common End-of-Year Financial Mistakes Entrepreneurs Make

News RoomBy News RoomNovember 26, 20240 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Entrepreneur

In 2023, a survey looked at Nevada business owners and the biggest challenges they faced. Entrepreneurs listed problems like adapting to inflation, finding new customers and managing cash flow. The problems varied somewhat, but all of them centered around money difficulties.

The reality is that small businesses tend to face more financial challenges since they have fewer resources than larger companies. It’s easy to make mistakes, especially toward the end of the year when things are busy. Let’s look at six common end-of-year financial mistakes entrepreneurs make and how you can avoid these issues.

Related: 6 Financial Mistakes Small Businesses Make All the Time

1. Not monitoring your finances regularly

Many entrepreneurs make the mistake of not monitoring their business finances regularly. They may delegate this responsibility to someone else and have little insight into how the company is doing.

Working with financial professionals is a good thing, but you need to have some understanding of your company’s finances. Failing to monitor your finances can leave your business more vulnerable to cash flow issues and fraud.

It’ll also be harder to make informed decisions about hiring and long-term investments. To avoid this mistake, review your financial statements regularly and stay on top of metrics like your cash flow, working capital and net profit margin.

2. Not planning for taxes

Tax season comes once a year, but if you’re a small business owner, you should be planning for taxes all year round. Adequate tax preparation will make tax season much less stressful and help you avoid unnecessary fines and penalties.

According to the IRS, one of the biggest mistakes many businesses make is underpaying their quarterly estimated payments. If you underpay throughout the year, you may get hit with a penalty. It’s a good idea to work with an accountant who can let you know how much you owe quarterly.

Another common mistake businesses make is failing to separate their business and personal expenses. Doing this can cause you to miss out on deductions and can generally just become a huge headache when it comes time to file your taxes.

Make sure you have a separate bank account and credit card for all business expenses. The right accounting software allows you to track and categorize these expenses and will automatically generate financial statements for you.

3. Not accounting for end-of-year expenses

When you’re doing your financial forecasting, it’s important to account for one-off, end-of-year expenses. For example, you may need to pay for a holiday party and Christmas bonuses for your employees. Your business may need to purchase additional inventory to account for the increased demand from customers. You may also want to invest in an end-of-the-year marketing push.

Because these expenses fall outside of your normal financial planning, it’s easy to underestimate the impact they’ll have on your budget. Plus, bonuses and marketing campaigns tend to be variable costs, making them harder to plan for. You can anticipate these costs by reviewing your company’s expenses from the previous year or two.

Related: 9 Must-Do End of Year Tasks for All Business Owners

4. Avoiding all debt

Many people grew up learning that debt is a bad thing and should be avoided at all costs. And in your personal life, that’s probably true in many cases. But as a business owner, debt can be a tool you can strategically use to grow the business.

For example, a small business loan or line of credit can allow you to purchase inventory or make a major investment in your business. Just make sure the purchase fits with your long-term business goals and that you have a plan for paying it back.

5. Neglecting inventory management

If your business sells products, inventory management will be key to your financial success. Having too much or too little inventory can lead to cash flow problems, lost sales and customer churn. Inventory management issues usually happen because businesses are relying on spreadsheets or manual tracking and don’t have real-time insights into their inventory.

The best way to solve this problem is by using inventory management software. The right software allows you to make data-driven decisions and save money by eliminating excessive stock levels. It can also make it easier to negotiate with suppliers and meet fulfillment orders.

6. Going into the new year without a financial plan

If you want your business to continue to grow, you need a plan and specific goals on how you’ll achieve that plan. The end of the year is a great time to sit down, review the previous calendar year and come up with a financial plan for the year ahead.

Review your balance sheet, income statement and cash flow statement to spot any financial trends in your business. Make sure your accounts receivable are up-to-date, and review your vendor contracts. It’s also a good idea to review your insurance policies to ensure your coverage is keeping pace with your business’s growth.

Related: Avoid These 10 Mistakes Entrepreneurs Make With Money

Once you understand where your business is at, you can begin planning for the new year. There are no guarantees in business, but adequate financial planning is the best way to ensure your business has the resources to meet its goals.

Read the full article here

Featured
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

29-Year-Old’s Salty Side Hustle Hit $10 Million Last Year

Make Money September 16, 2025

Here Are the Top 50 Mistakes I’ve Seen Kill New Companies

Investing September 16, 2025

How People Are Using ChatGPT: OpenAI Study

Make Money September 16, 2025

3 Popular Perks That Southwest Airlines Is Ending for Good — and 6 New Upgrades

Burrow September 16, 2025

7 Tips for Maximizing Your Social Security Benefits

Make Money September 16, 2025

TikTok Deal Is Imminent, President Donald Trump Says

Make Money September 15, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Here Are the Top 50 Mistakes I’ve Seen Kill New Companies

September 16, 20250 Views

How People Are Using ChatGPT: OpenAI Study

September 16, 20250 Views

Why Education Is A Lifelong Investment

September 16, 20250 Views

3 Popular Perks That Southwest Airlines Is Ending for Good — and 6 New Upgrades

September 16, 20250 Views
Don't Miss

7 Tips for Maximizing Your Social Security Benefits

By News RoomSeptember 16, 2025

insta_photos / Shutterstock.comThe average monthly Social Security retirement benefit is $1,976 as of January 2025,…

TikTok Deal Is Imminent, President Donald Trump Says

September 15, 2025

Google Parent Alphabet Reaches $3T Market Cap

September 15, 2025

The Aging Population is Driving Demand for Quality In-Home Care Services

September 15, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.