The end of the year presents a critical window of opportunity for small business owners. How you prepare in December can help simplify your tax season, reveal insights about your business's financial health and position you for growth in the new year.

At National Bank of Arizona, we know year-end financial tasks can get lost in the holiday rush. But dedicating time now to review and organize your finances can help you feel more prepared as 2026 begins. To help you get started, here’s our list of essential year-end financial tasks for your small business.

Review your financial performance

Before you can plan for next year, you need to understand this year. Review your financial statements and assess how your business performed against your 2025 goals.

Compare monthly revenue and expenses throughout the year to identify your strongest and weakest months. Look for patterns in product performance and unexpected expenses. Review cash flow statements to understand how money moved through your business. If you created a 2025 budget, compare actual spending to see where you stayed on track and where adjustments are needed for the year ahead.

Clean up outstanding items

Don't carry loose ends into the new year. Review your accounts receivable and follow up on overdue invoices—your year-end cash position may improve the sooner you collect payments. If you have vendor invoices from 2025, pay them before year-end to claim the deduction and start 2026 with a clean slate.

Ensure all business licenses, permits and registrations are current, and check renewal dates for 2026 to avoid lapses in compliance.

Prepare for tax season

Getting organized now can help make tax filing go smoother and may even reduce your tax liability.

Gather and organize documentation: Collect all 2025 receipts, invoices, bank statements and financial records. Organize them by category to help make tax preparation easier.

Reconcile all accounts: Ensure your bank accounts, credit card statements and accounting software all align. Reconciling accounts now can help you catch errors or discrepancies before tax season.

Review deductible expenses: Identify which business expenses you can deduct, such as office supplies, professional services, business insurance, employee wages and business travel.

Prepare 1099 forms: If you paid contractors this year, start gathering their information now. You'll need to issue 1099-NEC forms by January 31 if you paid them over the IRS threshold.

Assess your business banking needs

The end of the year is an excellent time to evaluate whether your banking services are meeting your business needs. Make sure your current business checking and savings accounts offer the features you need as your business grows. Consider whether enhanced fraud protection or treasury management tools could benefit your operations.

If you don't have a cash reserve, make establishing one a priority for 2026. Options like business money market accounts or CDs may help your savings earn interest while remaining accessible.

Will you need financing in 2026 for expansion, equipment, inventory or working capital? Starting credit conversations early helps give you time to explore options and determine what works best for your business before you need the funds.

Set financial goals for 2026

Use what you learned from 2025 to set realistic, actionable goals for the coming year.

Define revenue targets: Set specific revenue goals for 2026 and break them down by quarter or month to create manageable milestones.

Create a realistic budget: Use your 2025 spending patterns to build a detailed budget for 2026. Account for known expenses, anticipated growth and buffer for unexpected costs.

Identify growth opportunities: What could help your business grow? Prioritize opportunities based on potential return on investment and available resources.

Plan for major expenses: If you're considering significant investments, planning now allows you to budget appropriately and explore financing options if needed.

Finish strong, start stronger

Year-end financial tasks might not be the most exciting part of running a business, but they're among the most important. The time you invest now in reviewing performance and planning for growth may help create a solid foundation for success in 2026.

At National Bank of Arizona, we're committed to supporting small businesses through every season. Whether you need help evaluating your banking services, exploring financing options or implementing treasury management solutions, our experienced business bankers are here to help.

Connect with us today to discuss your year-end financial needs and goals for the new year.