End-of-Year Bookkeeping Checklist for Small Businesses

As a dedicated small business owner, reviewing your financial records at year-end isn’t just a task — it’s an opportunity. Creating a consistent year-end routine helps you stay organized for tax season, spot opportunities for growth, and start the new year on solid financial footing.

Use this helpful bookkeeping checklist below (or download a printable version) to make sure your books are complete and ready for a fresh start. Let’s pave the way for an amazing year ahead!

1. Review and Reconcile All Accounts

   Start by reconciling your bank and credit card accounts.

   • Bank & Credit Cards: Does the balance on your bank statement match the one on your balance sheet? Have all transactions been recorded for the year?

   • Loans: Verify that interest has been recorded and loan balances reflect what’s owed at year-end.

   • Payment Processors: Do you have accounts with payment processors such as Stripe, PayPal, or Shopify to review? Confirm that all transactions and fees are properly captured.

     
     

2. Review Outstanding Invoices & Payments Received (AR)

   Ensure that you’ve entered all customer invoices and applied payments accurately.

   • Is your Accounts Receivable (AR) report accurate?

   • Have any payments been mistakenly left unlinked from their corresponding invoices? Cleaning up AR ensures you’re not overstating income or missing cash flow opportunities.

     
     

3. Review Outstanding Bills & Payments Issued (AP)

   Check that all vendor bills are entered and categorized.

   • Review your Accounts Payable (AP) report for accuracy.

   • Identify any vendors who have been paid $600 or more by bank transfer or check. You may need to issue a Form 1099 to these vendors.

   • If you’re missing W-9s from vendors, request them now to stay compliant.

     
     

4. Review Asset Additions & Improvements

   Confirm that all business assets are properly classified.

   • If you use a safe harbor election, did you expense the assets that are under $2,500?

   • Do you have a copy of the receipt for any major purchases or improvements? Be sure to include the receipts in your tax file.

     
     

5. Perform a Physical Inventory Count (if applicable)

   • If your business holds inventory, conduct a year-end count.

   • Compare the results to your accounting records and adjust for lost, damaged, or outdated items. This step ensures your cost of goods sold (COGS) and balance sheet are accurate.

     
     

6. Review & Retain Payroll Documentation (if applicable)

   Gather all federal and state payroll tax filings, including:

   • Form 941 (Quarterly Federal Tax Return)

   • Form 940 (Annual Federal Unemployment Tax Return)

   • Form 1096 and Form W-3 (Year-End Summaries)

Keep copies of these forms for your tax preparer and your own records.

7. Review Your Financial Reports

   Take a moment to look over your balance sheet and income statement to assess your business’s performance and financial health.

   • Compare this year’s results to last year’s to spot trends or variances. 

   • Investigate any out-of-place items, such as negative account balances.

     
     

8. Gather Important Documents

   If you've experienced any significant financial changes or received new documents that could impact your tax file, now is the perfect time to start gathering everything.

   • Collect all relevant documents for your accountant or tax preparer.

   • If you’ve received new forms, loan statements, or financial documents, add them to your year-end file.

   • Request replacements for any missing documents now to avoid scrambling and reduce stress during tax season.

     
     

9. Store and Secure Your Records

   • Gather all your tax compliance documents into one complete file, whether digital or printed, and send it to your tax preparer. 

   • An organized financial package can help you save time and even reduce preparation fees when working with your accountant. 

   • Consider secure cloud storage for easy access and backup.

     
     

10. Plan Ahead for the New Year

Take the time to reflect on your business's performance over the past year and craft a well-thought-out strategy for the year ahead. 

• If you have extra capital, consider reinvesting in growth opportunities.

• If you experienced setbacks, use those insights to identify areas for improvement, setting the stage for greater success in the future.

• Use this financial clarity to set realistic goals and make data-driven decisions for the year ahead.

A little planning now can help you start the next year with confidence — and peace of mind.

Let’s Get Your Books Ready for the New Year

For total peace of mind, knowing everything has been handled properly throughout the year, reach out to Third Mesa. Our bookkeeping team specializes in helping small business owners feel confident, organized, and ready for what’s next.

Contact our team or learn more about our bookkeeping services today.