Year-end has a way of sneaking up on small business owners. For example, it’s suddenly December and you realize your books are three months behind, you’re not sure if your numbers are right, and your CPA is asking for things you can’t easily find. That’s where a year-end bookkeeping checklist can help.
It doesn’t have to be that way. Therefore, here’s a practical checklist to help you close out the year cleanly — so you organize tax season, keep your CPA happy, and actually understand how your business performed
1. Reconcile All Accounts
Reconcile every bank account, credit card, and loan account through December 31. Categorize every transaction and match it to your bank statements. This is the foundation of accurate year-end books.
2. Review and Categorize Every Transaction
Go through your transactions and make sure nothing is sitting in an uncategorized or miscellaneous category. Don’t miss these common items:
- Business meals and entertainment
- Home office expenses
- Vehicle mileage and expenses
- Software subscriptions and tools
- Professional development and training
3. Verify Accounts Receivable and Payable
Record all outstanding invoices and account for any unpaid bills. Pull your accounts receivable aging report — do you have invoices past 90 days that you should write off?
4. Prepare for 1099s
Also, issue 1099-NEC forms by January 31st to any contractors or vendors who paid more than $600 during the year. Keep a W-9 on file for each one and accurately record their payments in your books.
5. Organize Supporting Documents
Gather and organize:
- Bank and credit card statements for the full year
- Receipts for major purchases
- Payroll records
- Loan statements showing interest paid
- Any asset purchases over $2,500
6. Run a Final Profit & Loss and Balance Sheet
Before handing off to your CPA, first run your year-end financial reports and review them for anything that looks unusual. Because catching errors now is much easier than finding them during tax preparation, don’t skip this step.
7. Complete Year-End Checklist before your CPA Handoff.
Don’t wait. Complete your year-end bookkeeping checklist with a CPA handoff.
| 📥 Download our free “Small Business Year-End Bookkeeping With Confidence” guide and “Small Business End of Year Checklist” — both available in the OakPath Small Business Resource Library at oakpathbookkeeping.com. Or schedule a free discovery call if you’d like OakPath to handle your year-end bookkeeping for you.https://oakpathbookkeeping.com/resources/ |