Five Financial Checkpoints Every Business Owner Should Review in February

January often brings a rush of activity—year-end closeouts, new reporting requirements, and getting back into daily operations. February provides an important opportunity to review financial information, confirm accuracy, and make sure accounting processes are supporting informed decisions before deadlines and workloads increase. Here are five financial checkpoints every business owner should review in February to stay organized and prepared.

1. Confirm January Reconciliations Are Complete

Before moving forward, January’s activity should be fully reconciled. This includes bank accounts, credit cards, accounts receivable and payable, property and equipment, and any outstanding liabilities. Completing reconciliations early helps ensure financial statements accurately reflect business activity.

Monthly or quarterly bookkeeping reviews performed in accordance with applicable professional standards help prevent small discrepancies from becoming larger issues later in the year.

2. Review Cash Flow and Receivables

February is an ideal time to evaluate cash flow patterns. Reviewing accounts receivable, accounts payable, and overall cash position can highlight collection delays, expense trends, or timing issues that may need attention.

Having timely financial statements—whether processed in real time through cloud-based systems or prepared after the fact—allows business owners to respond quickly and plan with confidence.

3. Verify Payroll and Payroll Tax Activity

Payroll and payroll tax deposits are an important checkpoint early in the year. February is a good time to confirm wages, withholdings, accrued payroll liabilities, and tax payments are accurate and properly recorded, particularly if staffing changes occurred at year-end or in January.

Addressing payroll items now helps reduce compliance concerns and avoids unnecessary corrections later.

4. Evaluate Whether Your Financial Statements Meet Your Needs

Not all businesses and organizations require the same level of financial reporting or assurance. February is an ideal time to evaluate whether your current financial statements—and the level of assurance associated with them—align with your needs and upcoming requirements.

This may include planning for an audit, review, or compilation, discussing timing and scope, or completing preliminary or interim procedures that support timely reporting later in the year. In some cases, limited assurance through a review or agreed-upon procedures focused on specific areas may be sufficient, while other organizations may require a higher level of assurance based on lender, board, or regulatory expectations.

Taking time now to assess these needs allows for better scheduling, clearer expectations, and a smoother reporting process.

5. Plan Ahead for Taxes and Key Decisions

Tax planning does not begin in April. Reviewing financial information in February allows time to evaluate estimated tax needs, entity structure considerations, and applicable tax matters while options are still available.

Accurate, well-organized records make tax planning, preparation, and consulting more efficient and help reduce last-minute surprises.

A Strong Start Makes the Year Easier

February is an opportunity to make sure your accounting processes are working for you—not slowing you down. Taking time now to review these financial checkpoints can streamline tax season and support better decisions throughout the year.

If you’d like help reviewing your books, evaluating your financial statements, or planning ahead, the team at Anderson, Adkins & Crawford is here to help.
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