March 31, 2026, is the end of the first quarter of 2026. This is a propitious time to attend to certain matters that ensure the health and growth of your business. These things should be done at the close of each quarter of the year. Start now that Q1 has ended.
What things to do now:
1. Your financials
The end of a quarter is a great time to assess where your business stands, profit and loss wise. Run a profit and loss statement. Were sales what you expected, and what adjustments should you make for Q2? Look at what you had budgeted for expenses for the quarter and what you actually spent. This enables you to revise the budget for the next quarter.
Be sure to reconcile your bank account and credit card statements. Check that your accounting solution (e.g., QuickBooks) is up to date.
If you send invoices for your goods and/or services, check on your accounts receivable. Aging A/Rs need immediate attention to ensure collection.
Meet with your CPA or other financial adviser to review your numbers. With their professional help, create a game plan for Q2.
2. Your taxes
Taxes are not just an annual thing; there are more frequent filing and payment obligations.
- Estimated taxes. Small business owners may have to pay estimated taxes to cover their income tax and, if self-employed, self-employment taxes throughout the year. While the due dates for federal estimated taxes are called “quarterly,” they don’t fall neatly in 4 separate quarters. The due dates estimated taxes for individuals are: April 15, June 15, September 15, and January 15 of the following year. The first 3 dates apply for estimated taxes of calendar-year C corporations, but the fourth installment is due December 15. Still, you can prepare for upcoming due dates figuring what you need to pay to avoid penalties and be sure to have the funds on hand to meet the these payments.
- Employment taxes. For federal payroll tax purposes, Form 941, Employer’s Quarterly Federal Tax Return, is due on the last day following the end of the quarter. So, for Q1, the deadline for filing this form covering the period January through March is April 30. Upcoming deadlines are July 31, October 31, and January 31 of the following year. If the deadline falls on a weekend or holiday, the due date becomes the next business day.
- Check for state employment tax filings for state income tax withholding and state unemployment taxes, which may mirror the federal deadlines or have different dates.
- Sales taxes. Depending on your state (or states in which you have remote sales) and the level of your sales, you may have to file monthly, quarterly, or annually. You can download sales taxes laws from Avalara.
3. Your inventory
- Check your inventory levels. Look for shrinkage by monitoring discrepancies in your digital systems. Maybe you’ll see frequent “out-of-stock” alerts that don’t make sense. You probably won’t do a physical inventory until year end, but spot checks can help you determine if something is amiss. As a rule of thumb, your shrinkage rate shouldn’t exceed 1% or 2% of total inventory. Learn more about shrinkage from DescartesFinale.
- Identify slow-moving or obsolete items. Maybe you want to do markdowns or plan a sale for them?
- Restock items as needed. Consider looking for new or additional vendors.
4. Other matters
There are many other things you can do at the end of a quarter to keep you humming. A couple of examples:
- Cybersecurity. The end of a quarter is an optimum time to change passwords. Also be sure your software and apps have been updated as needed.
- Maintenance and repairs. Check on your equipment and machinery. Is any servicing required now? Do you want to plan for replacements?
Final thoughts
“The future starts today, not tomorrow.” – Pope John Paul II
Use today to get a jump on the next quarter. And remember to repeat all these activities after the end of Q2 on June 30, 2026!
Additional constructive information about planning for your business can be found in this list of blogs here.
