Your Ultimate Year-End Bookkeeping Checklist

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The end of the year is a natural time to pause, reflect, and reset your business finances. Before you dive into goal-setting for the new year, take a little time to make sure your books tell the full story of where you’ve been - and where you’re heading.

At SMG, we always remind clients that clean books are more than a tax-time task. They’re a foundation for smarter decisions and less stress. Here’s how to wrap up your bookkeeping confidently before the year closes.

1. Start with a Financial “Health Check”

Think of your bookkeeping like a wellness check for your business. Review your Profit and Loss statement and Balance Sheet - do the numbers make sense? Are income and expenses up to date?

If something feels off, now’s the time to dig in. A few hours of cleanup today can save you days of frustration in tax season.

Pro Tip: Run comparative reports (this year vs. last year) to spot trends. It’s a quick way to see what’s working, and where your cash might be quietly disappearing.

2. Clear Out Outstanding Invoices and Bills

Unpaid invoices and lingering vendor bills can skew your year-end numbers. Reach out to clients with friendly payment reminders and double-check that all vendor payments are recorded.

Bonus: Closing these out before year-end helps your accountant finalize accurate income and expense totals, and gives you a clearer picture of your true profit.

3. Gather and Store Receipts

Don’t wait for the January scramble. Whether it’s digital copies or paper receipts, make sure every transaction is documented. Missing one can mean missing a deduction.

Use your bookkeeping software’s upload feature to attach receipts directly to transactions - it keeps everything tidy and audit-ready.

4. Review Payroll and Contractor Details

If you paid employees or independent contractors this year, review those records carefully. Confirm that names, addresses, and payment totals are correct so you’re ready for W-2s or 1099s in January.

Quick Check: Make sure you have updated W-9 forms for all contractors you’ve paid more than $600 this year.

5. Reconcile Accounts — All of Them

Bank accounts, credit cards, loans, even digital wallets - reconcile them all. This step ensures that your books match your real balances, preventing errors from rolling into the new year.

If reconciling feels overwhelming, consider bringing in a bookkeeper for a year-end review. A second set of eyes can make sure everything lines up.

6. Reflect and Plan Ahead

Once your numbers are clean, take a moment to step back. What story did your finances tell this year? Maybe your revenue grew faster than expected, or maybe expenses crept up quietly. Either way, use those insights to plan smarter for the next twelve months.

Ask Yourself:

• What worked well financially this year?

• What can I automate or delegate next year?

• How can I improve cash flow consistency?

Wrap Up the Year with Confidence

A few hours of bookkeeping cleanup now means less chaos later, and a clear head heading into January.

At SMG, we help small business owners organize, understand, and optimize their books year-round so they can focus on growth, not spreadsheets.

Schedule a Clarity Call today and start the new year with financial clarity and confidence.