How to Prep Your Books for Year-End: A Business Owner’s Checklist
The end of the year sneaks up fast — and if your books aren’t ready, tax season can quickly turn into a stressful scramble. But with a little planning, you can close out your year smoothly, avoid costly mistakes, and walk into the new year with confidence.
Here’s a simple year-end bookkeeping checklist to help you stay organized and prepared:
✅ 1. Reconcile All Bank and Credit Card Accounts
Make sure every transaction matches your bank and credit card statements. This step catches errors like double charges, missed entries, or uncleared payments.
✅ 2. Review Accounts Payable and Receivable
Check what bills you still owe and what invoices haven’t been paid to you. Follow up on any outstanding receivables so you’re not leaving money on the table.
✅ 3. Clean Up Your Chart of Accounts
Make sure all transactions are categorized correctly. Avoid vague or catch-all categories — this makes your financial reports more accurate and easier to review.
✅ 4. Collect W-9s from Contractors
If you paid any independent contractors $600 or more during the year, you’ll need their W-9 forms on file to issue 1099-NEC forms in January.
✅ 5. Gather and Review Payroll Reports
Confirm that payroll taxes were calculated and filed correctly. Make sure all W-2 information is accurate and ready for your employees.
✅ 6. Check for Fixed Asset Purchases and Depreciation
If you bought equipment, vehicles, or other long-term assets, make sure they’re recorded properly — and don’t miss out on potential depreciation deductions like Section 179.
✅ 7. Review Your Loan Balances
Confirm your loan balances match the lender’s statements and record any accrued interest correctly.
✅ 8. Back Up Your Books and Secure Your Data
Whether you’re using QuickBooks Online or another system, make sure your data is backed up and secure. Data loss at year-end can be a nightmare!
Wrapping It Up
Year-end bookkeeping doesn’t have to be overwhelming. With the right process in place, you’ll not only make tax time easier — you’ll have clear insights into how your business performed and where you’re headed.
Want help closing out your books the right way? Wrap Up Bookkeeping can make sure everything is clean, accurate, and ready for year-end. Contact us today to get started!
