Year-End Bookkeeping Checklist for Small Business Owners

Year-end is the most important time in your bookkeeping calendar. Getting your books in order before December 31 — or catching up shortly after — sets you up for a smooth tax season and a clean start to the new year.

• Reconcile all bank and credit card accounts through December 31
• Review and categorize all uncategorized transactions
• Collect W-9s from any contractors you paid $2,000 or more
• Review accounts receivable — follow up on any outstanding invoices
• Review accounts payable — make sure all bills are recorded
• Record any depreciation entries for equipment purchased during the year
• Review your owner's draw or distributions for accuracy

• Issue 1099-NEC forms to contractors by January 31
• Issue W-2s to employees by January 31
• Reconcile payroll records to your payroll reports
• Pull a full-year Profit & Loss statement
• Pull a Balance Sheet as of December 31
• Gather documentation for major expenses (receipts, contracts, invoices)
• Review mileage logs if you deduct vehicle expenses

• Compare this year's financials to last year — look for anything unusual
• Confirm your accounting method (cash vs. accrual) is consistent
• Send everything to your tax preparer with organized documentation

If you're reading this in January and your books are a mess, don't panic. Our catch-up bookkeeping service gets your books fully reconciled and tax-ready. Our Year-End Books Cleanup is a flat $800 fee for most small businesses.

• What Is Catch-Up Bookkeeping and When Do You Need It?
• QuickBooks Cleanup: Fix Messy Books Step by Step
• 7 Bookkeeping Mistakes Small Business Owners Make
• 10 Tax Deductions Every Small Business Owner Should Know
• Our Bookkeeping Services
• Our Tax Preparation Services
• Contact Us

Behind on your books? Pay for the Year-End Cleanup now or contact us to get started. We work 100% remotely and can turn around most cleanups quickly.