Year-End Accounting Checklist for Small Businesses
Year-end accounting doesn’t have to be chaotic. With a clear checklist and consistent preparation, you can close your books smoothly, file taxes on time, and start the new year with confidence. This step-by-step guide helps small business owners organize records, reconcile accounts, and prepare accurate financial statements. Follow it, and your accountant or CPA will thank you-and your business will start the next fiscal year strong.
Explore our Accounting Services to see how we can help streamline your finances.
Step 1 – Reconcile All Bank and Credit Accounts
Match every transaction from your bank and credit card statements to your accounting software.
- Verify balances align with your statements.
- Resolve any discrepancies immediately.
- Confirm all deposits, payments, and transfers are recorded.
Accurate reconciliation prevents downstream reporting errors.
Step 2 – Review Accounts Receivable and Payable
Clean up outstanding invoices and bills.
- Send reminders for unpaid invoices.
- Write off uncollectible receivables.
- Verify vendor balances and record pending payments.
This ensures your Balance Sheet reflects reality, not outdated balances.
Discover the key differences between accounting and bookkeeping in this quick guide on Accounting vs. Bookkeeping.
Step 3 – Record Adjustments and Accruals
Work with your accountant to post:
- Depreciation and amortization
- Accrued expenses (like utilities or payroll owed)
- Prepaid expenses and deferred revenue
These adjusting entries align income and expenses with the correct fiscal period.
Step 4 – Organize Financial Statements
Generate final versions of:
- Profit and Loss Statement
- Balance Sheet
- Cash Flow Statement
Review them for reasonableness-look for unusual spikes or missing categories. These reports form the basis for tax filings and management review.
Step 5 – Prepare for Tax Season
- Gather W-9s and 1099s for contractors.
- Confirm payroll tax filings are current.
- Review potential deductions or credits.
- Deliver year-end financials to your CPA early.
Proactive prep avoids filing delays and penalties.
Step 6 – Plan Ahead for the New Year
Once you close your books, use the insights gained to:
- Update your budget and forecast.
- Revisit pricing, costs, or vendor agreements.
- Schedule your next year’s accounting cadence.
A clean close sets the tone for a financially organized year.
How RemoteBooksOnline Simplifies Year-End
Our accounting team handles year-end close from start to finish:
- Monthly reconciliations mean no backlog.
- CPA-reviewed reports delivered before tax deadlines.
- Secure portal for easy document sharing.
We make tax season effortless and predictable.
Master the basics by exploring how to read profit and loss in our detailed guide designed for all skill levels.
FAQs
When should I start year-end accounting?
Begin reconciling and organizing in December to give your accountant time for review before filing deadlines.
What documents should I gather for my CPA?
Bank statements, loan balances, payroll summaries, and year-end financial statements.
What happens if my books aren’t current?
You’ll need catch-up accounting before filing. Consistent monthly accounting prevents this.
How can RemoteBooksOnline help with year-end close?
We handle reconciliations, reporting, and CPA review-so your books are ready before tax season hits.
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
Want to offload the back office? Our outsourced bookkeeping service lets you focus on growing your business.
