As 2025 comes to a close, it’s important to prepare for the New Year with a solid financial plan to lead us to success and alleviate stress in the future.
To help you get started, we’ve created a simple and practical financial checklist to help you reflect on your financial decisions over this past year and confidently prepare for the upcoming financial year.
- Checking and Correcting Credit Scores
One of the most vital steps to achieving a healthy financial future is maintaining a good credit score. Your credit score is a numerical representation of your credit history that lets lenders know your creditworthiness (aka your likelihood of repaying borrowed money). If you’re wondering how to check your score, websites such as Credit Karma, Experian, and Credit Sesame allow you to see your score for free.
It’s important to note that checking your credit score, although a necessary first step, may not be enough. You will want to check your entire credit report as errors such as incorrect payment balances, accounts that don’t belong to you, and other outdated information can show up and negatively affect your credit score. If you find these errors, notify the credit bureau so that your score can be corrected and properly adjusted.
If your credit score isn’t where you want it to be, and there are no errors affecting it, don’t worry! There are ways to implement strategies that will help you improve your score over time. Some example strategies include:
- Paying off your full balance every month
- Paying the minimum on time consistently
- Using only 30% or less of your credit limit
- Building a lengthy credit history
- Small Businesses and Entrepreneurs
For small business owners and entrepreneurs, the end of the year is an opportunity to make tax-related changes that will positively impact your business in the new year. If you’re making quarterly tax payments, the end of the year is typically when you’ll make your fourth-quarter payment (depending on the type of business you own). Make sure to check your payment due date and correctly calculate it so you don’t end up getting hit with any additional tax penalties.
Note: Changing your tax status, whether a sole proprietorship, LLC, S-Corp, or C-Corp, can result in significant tax savings. Tax laws change over time, and your current business setup might not be saving you as much as it once did. Working with a tax advisor or CPA can help you take a fresh look at your tax status and uncover deductions like equipment purchases or home office expenses. With a professional keeping things organized, you can head into the year feeling confident and prepared.
- Charitable Giving and Retirement Contributions
The end of the year is the season of giving, and while generosity matters regardless of what you receive in return, your charitable contributions may also qualify for a tax deduction as a nice extra benefit.
Many people think that donating funds is the only way to receive these deductions, but you can also donate property, stocks, and even art. Of course, these gifts need to be properly documented and donated to a qualified organization. Depending on your tax status, they can be applied to either your business or individual tax return. Non-cash donations may offer additional tax benefits, especially when the donated items have gone up in value, so it’s a good idea to check with a tax professional.
You can also reduce your taxable income by adding money to a retirement account like a 401(k), SEP IRA, or SIMPLE IRA. Contributing the maximum amount before year-end can help you save more on taxes.
Conclusion
There’s still time to set these practices in motion before the year ends to make sure they’re counted toward the current tax year. Remember, implementing these strategies now can help keep you organized and on track as you build the prosperous financial future you desire and deserve.