Year-End Bookkeeping Checklist – What to Do Before December 31st
The end of the year always sneaks up faster than we think. One minute it’s pumpkin spice season, the next it’s New Year’s Eve and you’re rushing to get your books together for tax time. The good news? With a little planning now, you can avoid the stress and kick off the new year with your finances in order.
Here’s a year-end bookkeeping checklist to keep things simple and stress-free:
✅ Reconcile Your Accounts
Think of this as making sure your checkbook balances. Go through your bank accounts, credit cards, and loans to confirm that everything in your bookkeeping software matches your actual statements.
👉 Why it matters: Catching errors or missing transactions now saves a lot of headache later (and makes your CPA love you).
✅ Review Your Income & Expenses
This is the time to check if all your expenses are in the right categories and see what deductions you can claim. Common ones include:
Office supplies or software
Professional services (like your friendly bookkeeper 😉)
Business travel and mileage
Home office expenses
👉 Pro tip: Thinking about a big purchase for your business? Talk to your CPA — buying before December 31 might lower your taxable income.
✅ Gather Receipts & Paperwork
Receipts have a way of hiding in glove compartments, desk drawers, and random purses. Collect them now and upload digital copies to your bookkeeping system. Having everything in one place will make tax season so much smoother.
✅ Double-Check Payroll & Contractors
If you pay employees, make sure wages and withholdings are accurate. If you’ve worked with contractors, confirm their addresses and tax IDs are correct so 1099s don’t trip you up in January.
✅ Schedule a Year-End Review
Don’t wait until tax season to meet with your bookkeeper or accountant. A quick check-in before year-end can help you:
Spot tax-saving opportunities
Stay compliant with IRS rules
Set goals for next year
Wrapping It Up
Year-end doesn’t have to feel overwhelming. By tackling these steps now — reconciling accounts, reviewing deductions, and getting paperwork organized — you’ll save yourself time, stress, and maybe even a little money come tax season. Future-you will thank present-you for the prep work!
