Year-End Checklist for Retail Success

Originally published: November 16, 2020

Updated: November 25, 2025

“You can’t really know where you are going until you know where you have been.” – Maya Angelou

Those words are never more appropriate than when it comes to closing out the year for a retail business. Getting a snapshot of where your business is at – reviewing the past year, preparing earnings and tax information, and planning for the future – all require a thorough examination, and a year-end checklist is an essential part of that review.

Why Year-End Reviews Matter 

The final weeks of the year are hectic. Holiday sales peak, returns pile up, and inventory can feel overwhelming. That’s why consistent inventory tracking, monthly or even weekly, is a lifesaver.

“Proactive inventory management saves time and stress,” says Charles Owen, Chief Experience Officer at Paladin Data Corporation. “Just a few minutes a day can eliminate the chaos of year-end counts, freeing up time for sales and marketing.”

Accurate inventory records also help retailers:

  • Identify slow-moving or missing items
  • Optimize product placement
  • Automate reporting with digital retail platforms

Your Year-end Checklist 

Here’s what every retail business should review before ringing in the new year:

√ Physical Inventory 

Year-end inventory reports are essential for tax filings and performance evaluation. But it’s not just about counting.

Reviewing, not just counting, your inventory is extremely important. When reviewing your inventory, you want to make sure everything is priced accurately and all the items are well presented. If you do this habitually, at the end of the year getting the information you need is pretty simple.

Charles Owen

Chief Experience Officer, Paladin Data Corporation

Paladin recommends reviewing a small section – about four feet – of your store each day. Using a handheld scanner, such as the Datalogic Memor 17 powered by PaladinGo™, and assigning location codes to products gradually creates a complete map of your store’s inventory.

This step-by-step process allows you to start using suggested order forecasting reports one section at a time. Once every section is counted and recorded in Paladin, the Suggested Order feature generates a detailed report and purchase order for optimal stocking. It also makes reviewing year-end inventory as simple as the click of a mouse.

√ Financial Reports  

These reports offer a snapshot of your business’ health and progress:

Profit and Loss Statement

Balance Sheet

Cash Flow Report

Consult your CPA for specifics, but also consider:

Inventory Valuation Summary

Accounting Summary

Comparative Revenue Reports

Owen recommends calculating Gross Margin Return on Investment (GMROI) to measure how effectively inventory turns into profit.

√ Employee Records and Payroll ​  

Year-end is the perfect time to audit employee data, too.

Update contact info

Review payroll and tax deductions

Remove inactive accounts

Routine reviews can prevent fraud. One company discovered 150 active accounts belonging to former employees, some of whom had been terminated for data theft.

Use workforce management tools to streamline this process and plan future staffing needs.

√ Marketing and Sales  

​Evaluate your marketing channels – websites, email, social media, print, and broadcast. Use metrics to refine your strategy and reallocate budgets.

Also, audit your website. Even if a full redesign isn’t needed, updating contact info and content ensures accuracy and professionalism.

√ Computer Audit and Update 

Your network – computers, servers, payment terminals, mobile devices – is just as critical as your delivery vans or forklifts. These tools should be reviewed annually and factored into your budget for replacement or upgrades.

The biggest mistake many businesses make when investing in retail technology is stopping once the system is in and operating. Why do stores invest in a retail platform? The answer is pretty simple: to simplify operations, increase efficiency, and make more money. Buying retail technology will help you do all of that, but only if you learn how to properly use it and continue to invest in it. You get out what you put in.

Charles Owen

Chief Experience Officer, Paladin Data Corporation

If you haven’t already implemented daily backups, make sure to perform month-end and year-end backups. Managed IT services can automate updates and backups, giving you peace of mind and a reliable snapshot of your business at year’s end. 

√ Vendor Information Update​  

Strong vendor relationships start with accurate contact information. Whether you work with a single co-op or dozens of suppliers, make sure your records are current.

Also review and update contacts for:

Local service providers (HVAC, electrical, plumbing)

City, county, and state officials

Keeping these lists fresh ensures smooth operations and quick access when you need support.

√ Review and Plan for the Year Ahead​

From global disruptions to local challenges, every year brings lessons. Document what worked, what didn’t, and how you adapted. This reflection is key to planning for success.

Use the SMART framework to set goals:

Specific - Clear and focused

Measurable - Quantified with metrics

Attainable - Realistic and achievable

Relevant - Aligned with business priorities

Time-Based - Set deadlines for progress

A year-end checklist helps you turn insights into action.

Technology That Supports Your Growth

Retailers using point-of-sale and inventory management systems are better equipped to complete year-end reviews and plan for growth.

Paladin Data Corporation has supported independent retailers since 1980 with tools that simplify operations:

For more information, call Paladin at 800-725-2346, email us at sales@paladinpos.com, or visit www.paladinpointofsale.com.

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brian bullock 

Author