Year-End Bookkeeping Checklist for Small Business Owners
Don't let year-end sneak up on you. This checklist covers everything you need to do to close out your books, prepare for taxes, and start the new year clean.
Year-end is the most important time in your bookkeeping calendar. Getting your books in order before December 31 — or catching up shortly after — sets you up for a smooth tax season and a clean start to the new year.
December: Wrap Up the Year
- Reconcile all bank and credit card accounts through December 31
- Review and categorize all uncategorized transactions
- Collect W-9s from any contractors you paid $600 or more
- Review accounts receivable — follow up on any outstanding invoices
- Review accounts payable — make sure all bills are recorded
- Record any depreciation entries for equipment purchased during the year
- Review your owner's draw or distributions for accuracy
January: Prepare for Tax Season
- Issue 1099-NEC forms to contractors by January 31
- Issue W-2s to employees by January 31
- Reconcile payroll records to your payroll reports
- Pull a full-year Profit & Loss statement
- Pull a Balance Sheet as of December 31
- Gather documentation for major expenses (receipts, contracts, invoices)
- Review mileage logs if you deduct vehicle expenses
Before You File
- Compare this year's financials to last year — look for anything unusual
- Confirm your accounting method (cash vs. accrual) is consistent
- Send everything to your tax preparer with organized documentation
What If Your Books Are Behind?
If you're reading this in January and your books are a mess, don't panic. Our Year-End Books Cleanup service gets your 2025 books fully reconciled and tax-ready for a flat $800 fee.
Behind on your books? Pay for the Year-End Cleanup now or contact us to get started. We work 100% remotely and can turn around most cleanups quickly.
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The Gap ProAdvisors
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