Five Business Conversations to Have Before Year-End

Year-end preparation is easier when it begins with a few specific conversations instead of a request to “look everything over.” For a small Coastal Virginia business, the useful question is what will change: a lease, a new employee, a vehicle, a partner, a major customer or the way money moves through the company.

This is a meeting-preparation guide. Your accountant, attorney and other qualified advisers should address the tax, legal, insurance and financial consequences for your business.

1. What do our records actually show?

Ask the person responsible for the books which months are reconciled, which entries need explanation and which documents are missing. The IRS describes business records such as invoices, receipts and other supporting documents as part of substantiating income and expenses. A bank balance alone does not explain the business’s activity.

Bring a short list of unexplained transactions and changes in how the company earns or spends money. Ask your accountant what additional information is needed and when. Do not guess at a tax treatment just to close the list.

2. Which commitments are coming up?

Create a calendar of renewals, notice dates and decisions for leases, service agreements, financing and major customer contracts. Put the relevant documents in one secure place. Ask your attorney to review the specific provisions that matter to your plans.

A useful question is, “What must we decide before the next deadline?” That is more actionable than discovering a notice period after you intended to make a change.

3. Has the operation outgrown its arrangements?

List new locations, equipment, services, vehicles, employees or subcontractor relationships. Discuss relevant changes with the adviser responsible for each area. Do not assume an existing agreement or policy automatically covers a different activity.

Bring facts: when the change happened, who is involved, what the work includes and any existing documents. Let the appropriate professional explain the implications.

4. Who can act if the usual person is unavailable?

Map operational responsibilities for payroll, customer communication, records and bill approval. Identify the backup person and what that person needs to know. Use proper account access and approval arrangements rather than sharing passwords in a general handoff document.

If authority or ownership documents need to change, involve counsel. An internal checklist should not be treated as a substitute for the necessary legal arrangements.

5. What gets decided next?

End each meeting with a decision list: the issue, the person responsible, the missing information and the next date. Separate a recommendation from an approved action. This prevents everyone leaving with a different understanding of what happens next.

This week’s starting point: collect the unresolved questions on one page. Send that agenda through your adviser’s preferred secure channel before the meeting. The goal is a useful conversation while there is still time to gather answers.