The last weeks of the year are busy for most small businesses, which is exactly why bookkeeping tends to slide. But a few focused hours now can save you days of stress in the new year, give your CPA what they need and help you start fresh with clean, reliable numbers.
Use this checklist to close out the year in an organized way. Work through it in order, and check off each item as you go.
1. Reconcile every account
Start by making sure your books match reality. Reconcile each of these against its statement through the end of the most recent month, then again once December’s statements arrive:
- Business checking and savings accounts
- Business credit cards
- Loans and lines of credit
- Payment processor and merchant accounts
Look for uncleared items that have been sitting for months, such as old checks that were never cashed or deposits that were never recorded. Investigate and resolve them now, rather than carrying them into another year.
2. Review what customers owe you
Run an accounts receivable aging report and go through it customer by customer. For each open invoice, decide whether to follow up, offer a payment plan or, for amounts you truly cannot collect, discuss with your CPA how to handle them.
Send reminders before the holidays, when many customers are closing out their own budgets. A short, friendly note often gets an invoice paid.
3. Review what you owe
Run an accounts payable report and confirm that every bill listed is accurate and every bill you have received is entered. Check for duplicate entries and for bills that were paid but never marked as paid.
Talk with your CPA before deciding whether to pay certain expenses before or after year-end. Timing can matter for taxes, and the right choice depends on your situation.
4. Clean up categories and expenses
Scroll through the year’s transactions and look for:
- Items sitting in “uncategorized” or “miscellaneous”
- Personal expenses paid from business accounts (or business expenses paid personally)
- Large purchases, such as equipment or vehicles, that your CPA will want to know about
- Missing receipts for significant expenses
Recategorize what needs it and gather receipts while the details are still fresh. If personal and business spending were mixed, write down what happened so your CPA can sort it out correctly.
5. Organize payroll and contractor records
Confirm that payroll records for the year are complete and match what was actually paid. Review your list of independent contractors and make sure you have current contact and tax information on file for each one.
Payroll filings and contractor information returns, such as 1099 forms, have deadlines early in the new year. The specific rules and dates are set by the IRS and can change, so confirm exactly what applies to your business with your CPA or payroll provider well ahead of time.
6. Count inventory and list assets
If you carry inventory, plan a physical count close to year-end and compare it with what your books show. Write off damaged or obsolete stock in consultation with your CPA.
Update your list of fixed assets as well: what you bought, what you sold or disposed of, and the dates and amounts. This helps your CPA handle depreciation correctly.
7. Put state deadlines on the calendar
If you have a Florida LLC or corporation, your annual report is due to the Division of Corporations between January 1 and May 1. Filing after May 1 brings a $400 late fee, so schedule it for early in the window. If you operate under a fictitious name (DBA), check whether your registration expires this year; Florida fictitious names expire December 31 of their fifth year.
This is also a good time to confirm your local business tax receipt and any professional licenses are current. Check with your city, county and any state licensing agency.
8. Gather documents for your CPA
Put together a year-end package with your profit and loss statement, balance sheet, bank and card statements, loan statements, payroll reports, contractor records, asset purchases and any notes about unusual transactions. A complete, organized package usually means fewer questions and a smoother tax season.
9. Set up the new year right
Finally, use what you learned this year to make next year easier. Set a monthly reconciliation date, a simple system for saving receipts and a quarterly check-in to review your numbers.
If keeping up with the books is more than you have time for, our bookkeeping and payroll services start at $350 per month. We are not a CPA firm, but we keep your records organized and ready for your CPA all year long. For broader planning, our business consulting team can help you set goals for the year ahead.
Start the year with clean books
Want help working through this checklist? Book a free consultation or call (772) 356-3550, and we will help you close out the year with confidence.
