When it’s time to move on, some business owners opt to sell their business, passing the torch to a new owner. Others choose to close the doors for good, especially if the idea of working for someone else again sounds like a nightmare. If you’re in the latter camp, this guide is for you.
Here’s what to do if you’ve decided to lovingly close your beloved business.
Wrap Up Your Bookkeeping
- QuickBooks Catchup: Make sure your books are current. QuickBooks gives you 12 months of access after cancellation—plenty of time to download reports, export data, and wrap up your records.
- Final Reconciliations: Pay all your bills, collect all your outstanding invoices, reconcile accounts, and prep for final tax filings.
Talk to Your Accountant
- Tax Filings: Final federal, state, and local returns are a must. Your accountant will know the deadlines and forms.
- Financial Strategy: Your accountant can help you determine the best timing and method for closing, especially if you’re dealing with assets, liabilities, or outstanding payroll.
Talk to Your Attorney
- Dissolution Paperwork: File formal closure documents with your state to legally dissolve your business or non-profit.
- Legal Notifications: You may need to notify creditors, vendors, and other stakeholders.
- Record Retention: Your attorney can advise on how long to keep contracts, employee records, and other legal documents.
Cancel Subscriptions & Services
- Software & Tools: Cancel services like QuickBooks, Microsoft 365, and LinkedIn. Check all of your dues and subscriptions to be sure you aren’t paying a monthly fee on items you no longer use to run your business.
- Website & Email: Decide whether to keep your domain or email active for future use or resale.
Close Financial Accounts
- Bank Accounts: Once all transactions are done, close accounts to avoid monthly fees.
- Credit Lines: Pay off and close business credit cards and loans.
Handle Employee & Payroll Obligations
- Final Paychecks: Issue final wages, W-2s and benefits.
- Reports: File final payroll tax returns, unemployment reports, and workers’ comp filings.
Deal with Physical Assets
- Office Supplies & Furniture: Sell, donate, or store what you no longer need.
- Files & Records: Retain employee records and tax documents 3-7 years, depending on the item.
- Tax Documents: Retain all federal, state, and local tax filings and supporting documents for 3-7 years.
- Financial Statements: Keep profit and loss statements, balance sheets, and bank statements for the same period, especially if the IRS comes knocking.
Final Thought
Closing your business is a big decision—and a big job. But with the right support, it doesn’t have to be overwhelming. If you need help cleaning up your bookkeeping or support to close your business, Contact us today—we’re here to help you finish strong and move forward with confidence.
