Year-End Bookkeeping Checklist

Clean separation between business and personal is the foundation everything else is built on. If this isn't in place, start here first.

• Confirm your business bank account is active and used exclusively for business transactions
• Confirm your business credit card is used exclusively for business expenses
• Move any personal charges made on business accounts to a personal account (and document the reason)
• Collect all December bank and credit card statements

Reconciling matches your bank records to your books. If this hasn't happened monthly, year-end is the time to catch up, month by month, going back.

• Reconcile all bank accounts through December 31
• Reconcile all credit card accounts through December 31
• Ensure all transactions are categorized in your accounting software
• Review and clear any uncategorized or "ask my accountant" transactions
• Review your December Profit & Loss report for anything that looks off

How you pay yourself affects how your taxes are calculated. Make sure your records reflect what actually happened this year.

• Document all owner's draws taken throughout the year with dates and amounts
• If on payroll: confirm all payroll records and W-2s are accurate
• Confirm your compensation method is documented and consistent
• Review any personal loans to or from your business and document them properly

These three reports are what your accountant will ask for. Having them clean and current is what year-end is really about.

• Pull your full-year Profit & Loss report (January 1 – December 31) Review income, cost of goods sold (if any), and expenses line by line.
• Pull your Balance Sheet as of December 31 Confirm assets, liabilities, and equity look accurate.
• Run an Accounts Receivable aging report and identify any outstanding invoices
• Run an Accounts Payable report and confirm no outstanding vendor bills are missed
• Back up your accounting file or confirm cloud backup is current

Getting these items in order before you hand anything off to your CPA saves time, reduces fees, and prevents amended returns.

• Confirm books are reconciled and current through December 31
• Gather and organize all business receipts for the year Digital receipts in a folder by month is fine. Just make sure they're accessible.
• Identify all contractors you paid $600 or more this year 1099-NECs must be filed by January 31. You'll need their legal name, address, and SSN or EIN.
• Collect W-9 forms from any contractors who haven't submitted one
• Confirm all quarterly estimated tax payments are recorded (if applicable)
• Note any large purchases, asset disposals, or loans taken this year to discuss with your CPA
• Send your clean books and supporting documents to your accountant