Year-End Bookkeeping Checklist

Jan 28

1. Reconcile All Accounts

Ensure your bank accounts, credit cards, and other financial accounts are reconciled. Compare your records with bank statements to catch any discrepancies or errors. This step is crucial for accuracy.

2. Review Accounts Receivable and Payable

Accounts Receivable: Follow up on unpaid invoices and write off any bad debts.
Accounts Payable: Pay outstanding bills and ensure all vendor invoices are recorded.

3. Take Inventory

If your business holds inventory, conduct a physical count to verify your records. Adjust your books to reflect any discrepancies, such as shrinkage or damaged goods.

4. Review Payroll Records

Ensure all payroll records are accurate and up-to-date. Verify that employee information, wages, and tax withholdings are correct. Don’t forget to issue W-2s and 1099s to contractors by the deadline.

5. Organize Receipts and Documentation

Gather and organize all receipts, invoices, and financial documents. This will make tax preparation easier and ensure you have the necessary records in case of an audit.

6. Depreciate Assets

If your business owns assets like equipment or vehicles, A tax professional should calculate depreciation and record it in your books. This ensures your financial statements reflect the true value of your assets.

7. Generate Financial Reports

Create key financial reports, including:

Profit and Loss Statement: Summarize your income and expenses for the year.
Balance Sheet: Provide a snapshot of your business’s financial position.
Cash Flow Statement: Track the flow of cash in and out of your business.

These reports will help you assess your business’s performance and plan for the future.

8. Back Up Your Data

Protect your financial records by backing up your data. Whether you use cloud-based software or physical storage, ensure your files are secure and accessible.

9. Plan for Taxes

Estimate your tax liability and set aside funds to cover it.
Identify potential deductions and credits to minimize your tax burden.
Consult with a tax professional to ensure compliance with regulations.

10. Set Goals for the New Year

Use your year-end review to identify areas for improvement and set financial goals for the coming year. Whether it’s increasing revenue, reducing expenses, or improving cash flow, having a plan in place will help you stay on track.

Let Us Help You Close Your Books Like a Pro!

Closing your books at year-end can feel overwhelming, but you don’t have to do it alone. At Meadowsweet Bookkeeping LLC, we specialize in helping small business owners like you stay organized, save time, and achieve peace of mind. Let’s work together to wrap up the year strong and set your business up for success in the new year!