January Finance Checklist for Small Business Owners
January has a particular energy for small business owners. It’s a mix of fresh-start optimism, a desire to get organised, and the quiet dread of looming deadlines. The good news? A little structure goes a long way!
Whether you’re a sole trader, a growing team, or somewhere in between, these steps will help you start the year on solid financial footing. If' you’d like a downloadable version - get it here!
✅ 1. Review Your Bookkeeping for the Previous Year
Before you can plan ahead, you need a clear view of what just happened. A clean set of books now saves hours and headaches later.
Take time to:
• Reconcile all bank accounts
• Chase missing invoices or receipts
• Check for duplicates or odd transactions
• Make sure your bookkeeping software (Xero, QuickBooks, FreeAgent) is tidy and up to date
🧾 2. Prepare for Self-Assessment (If Applicable)
If you’re filing a Self-Assessment tax return, January is crunch time.
Make sure you have:
• Income records
• Expense reports
• Mileage logs
• Details of any grants, benefits, or additional income
• Your UTR and Government Gateway login
👥 3. Update Payroll and Employee Records
Start the year with accurate, compliant payroll data.
Review:
• Salaries, bonuses, and benefits
• Starter/leaver information
• Holiday balances and carryovers
• Any changes needed for the new tax year
It’s also a great moment to check whether your payroll processes still serve you well.
📊 4. Run Key Financial Reports
January is the perfect time to take stock.
Run:
• Profit & Loss
• Balance Sheet
• Aged Receivables
• Aged Payables
• Cash Flow Summary
These reports help you spot trends, risks, and opportunities early.
🎯 5. Set or Revisit Your Financial Goals
Think about what you want this year to look like.
Consider:
• Revenue targets
• Savings or investment goals
• Hiring plans
• Big purchases or upgrades
• Debt repayment
💷 6. Review Your Pricing
Costs change. Your value evolves. January is a natural time to adjust your pricing.
Review:
• Supplier costs
• Margins
• Competitor pricing
• Profitability by service or product
Note: If you’re increasing prices, communicate confidently and clearly. Your clients will value transparency.
🧹 7. Audit Your Subscriptions and Software
A quick win that often saves money and one which is too often overlooked!
Check:
• What you’re actually using
• Renewal dates so you don’t get caught out!
• Whether you’re on the right plan
• Duplicate tools that do the same job - especially free services!
📈 8. Update Your Budget and Forecast
A fresh year deserves a fresh forecast.
Map out:
• Seasonal highs and lows
• Tax bills
• Planned investments
• Cash flow gaps
• Growth opportunities
🗂️ 9. Review Your Compliance Deadlines
Make sure you’re clear on:
• VAT deadlines
• Payroll submissions
• Confirmation statement
• Corporation tax
• MTD requirements
🤝 10. Book a January Strategy Session With Your Accountant
January is the perfect time to check in with your accountant.
A good strategy session can help you:
• Review last year’s performance
• Plan for growth
• Identify risks
• Explore whether a Fractional Finance Director service could support your next stage
You don’t have to do it all alone.