Year-end is one of the most important times for any small business—it's your chance to tie up loose ends, ensure your financials are accurate, and prepare for a strong start to the new year. This checklist walks you through each step so you can close the books with clarity and confidence.
📁 1. Update All Financial Records
Start by ensuring all income and expense transactions are recorded and categorized correctly. Keeping things up to date now prevents surprises later and ensures accurate financial reporting.
Key tasks:
✅Record all income and sales
✅Enter and categorize all expenses
✅Update vendor bills and payments
✅Enter payroll and contractor payments
✅Record asset purchases or sales
🔄 2. Reconcile Every Account
Reconciliation is one of the most critical steps in closing the books. Make sure the balances in your accounting system match your statements. Any discrepancies should be investigated and corrected before finalizing your reports.
Key tasks:
✅Reconcile bank accounts
✅Reconcile credit cards
✅Reconcile loans and lines of credit
✅Reconcile payment processors (PayPal, Stripe, Shopify, etc.)
✅Investigate and correct discrepancies
📬 3. Review Accounts Receivable
A clear picture of what you're owed helps you understand cash flow heading into the new year.
Key tasks:
✅Verify outstanding customer invoices
✅Send reminders for overdue payments
✅Apply all customer payments
✅Write off uncollectible invoices if needed
📤 4. Review Accounts Payable
Confirm what you still owe to vendors and suppliers so nothing is missed.
Key tasks:
✅Verify all unpaid vendor bills
✅Confirm payment status
✅Apply payments correctly
✅Resolve duplicates or incorrect entries
👥 5. Verify Payroll & Contractor Records
Accurate payroll data is essential for compliance and tax reporting. Cleaning this up now ensures smooth year-end filings like W-2s and 1099s.
Key tasks:
✅Confirm total wages, benefits, and withholdings
✅Ensure payroll reports match your books
✅Verify all contractor payments
✅Collect or confirm W-9s for contractors
✅Prepare for W-2 and 1099 filings
🧾 6. Review Fixed Assets & Depreciation
If you purchased, sold, or retired any equipment this year, make sure your fixed asset list reflects those changes.
Key tasks:
✅Add new asset purchases
✅Record disposals
✅Update depreciation entries
✅Review the fixed asset schedule
📊 7. Review Your Profit & Loss (P&L) Statement
A P&L review helps you understand performance and ensures your income and expenses are accurate.
Key tasks:
✅Confirm income is categorized correctly
✅Verify expense categories
✅Identify missing, duplicate, or unusual entries
✅Investigate fluctuations
📒 8. Review Your Balance Sheet
Your Balance Sheet provides a snapshot of your financial health. Ensuring accuracy here is one of the most important steps in truly closing the books.
Key tasks:
✅Verify assets and liabilities
✅Clear suspense or temporary accounts
✅Confirm owner contributions and draws
✅Match loan balances to lender statements
📝 9. Prepare for Tax Season
Accurate, organized books make tax season smoother for you and your tax preparer.
Key tasks:
✅Ensure all transactions are categorized
✅Organize receipts and supporting documents
✅Update mileage logs
✅Confirm your year-end Trial Balance
✅Flag unusual or complex transactions
📅 10. Set Up for the New Year
Year-end isn’t just about closing the books—it’s about preparing for a strong start.
Key tasks:
✅Review and adjust next year’s budget
✅Update recurring invoices and bills
✅Evaluate your bookkeeping processes
✅Consider whether you need ongoing bookkeeping support
✅Clean up your chart of accounts if needed
Close Your Books with Confidence
Managing year-end doesn’t have to be overwhelming. With an organized checklist and accurate financials, you’ll head into the new year knowing your business is on solid ground.
If you’d like expert help preparing your books, cleaning up your financials, or maintaining accuracy throughout the year, SIMPLY Financials PLUS is here to support you.
👉 Contact SIMPLY Financials PLUS today for professional bookkeeping and accounting assistance—and start your new year with confidence.