5 Bookkeeping Tips to Get Ready for Year-End
The end of the year can sneak up fast — especially when you’re busy running your business. But closing out your books properly before the year wraps up makes tax time easier and gives you a clear picture of how your business performed.
Here are five key bookkeeping tips to help you finish the year strong and start the new one on the right foot:
1. Reconcile All Bank and Credit Card Accounts
Make sure every transaction is accounted for and matches your bank and credit card statements. This helps catch errors like duplicate entries, missing payments, or incorrect amounts.
2. Review Accounts Receivable and Payables
Check your open invoices and unpaid bills:
Follow up on any outstanding receivables.
Pay any remaining vendor bills.
Clear up any old balances that don’t belong.
This helps ensure your income and expenses are accurate for the year.
3. Confirm Contractor Payments and W-9s
If you’ve paid any contractors $600 or more, make sure you have their W-9 forms on file. You’ll need this info to issue 1099-NEC forms by January 31.
4. Double-Check Your Expense Categories
Review your expense transactions and make sure they’re classified correctly. Avoid vague “miscellaneous” entries, and make sure big purchases like equipment are recorded properly (and eligible for deductions like Section 179).
5. Schedule a Year-End Review With Your Bookkeeper or Accountant
Get a second set of eyes on your numbers before closing the books. This is the time to:
Review your Profit & Loss and Balance Sheet
Talk through any major purchases or planned deductions
Confirm if you need to make any final estimated tax payments
Wrapping It Up
A little attention at year-end goes a long way toward making tax season less stressful and helping you start the new year with a clean slate.
Need help closing out your books and preparing for year-end? Wrap Up Bookkeeping is here to help make sure your numbers are accurate and ready to go. Contact us today!
