Year-End Bookkeeping Checklist:
Why December Is the Best Time to Fix Your Books
Tax season feels stressful when your books are messy, missing information, or full of duplicates. We love helping business owners get organized before the chaos hits because it makes the entire tax process easier for everyone involved. December is the perfect time to tie up loose ends, clean up your financials, and step into the new year feeling confident and prepared.
Here’s a simple, CFO-approved year-end checklist to help your business stay organized.
1. Reconcile All Accounts
Bank accounts, credit cards, loans, merchant processors. Everything should match what is in your accounting software. Clean reconciliations prevent surprises during tax prep.
2. Categorize Every Transaction
Uncategorized expenses create delays and often lead to tax deductions being missed. Making sure your books reflect accurate categories helps your CPA complete your return faster and more accurately.
3. Review Accounts Receivable
Send reminders for unpaid invoices, clean out old ones, and write off amounts that will never be collected. Healthy cash flow starts with staying on top of who owes you money.
4. Review Accounts Payable
Enter outstanding vendor bills and confirm accuracy. This helps you know exactly what you owe and plan your cash flow for January and February.
5. Update Your Profit and Loss
Once everything is reconciled and categorized, generate a clean profit and loss statement. This gives you a complete picture of how your business performed this year.
6. Organize Receipts
Digital copies are fine. What matters is that everything is easy to access. Your CPA will thank you, and you’ll avoid mistakes during tax time.
7. Check Payroll Records
Confirm all W-2 and contractor information. Clean payroll data helps with 1099s and year-end filings.
8. Connect With Your Bookkeeper or CFO
If you’re stuck or overwhelmed, December is the best time to hand everything over. We love taking this off your plate so you can start January with accurate financials and complete peace of mind.
Why This Matters
Clean books mean lower CPA fees, a smoother tax season, and the ability to make smart financial decisions in Q1. This is the foundation for a year of strong cash flow.
How We Can Help
We help businesses in Albany, the Hudson Valley, the Tri-State area, and nationwide strengthen their financial systems, forecast cash flow, and plan strategically for taxes and long-term growth.
If you are ready to improve your cash flow before tax season and make confident, data-driven decisions:
