The end of the year is right around the corner — and while it’s tempting to focus on holiday sales or finally taking a break, there’s one more thing every small business owner should tackle: your year-end finances.
A little cleanup now can save you stress (and maybe even some money) later. So grab your coffee, open up your accounting software, and let’s walk through a simple checklist to wrap up your year on a strong note.
1. Reconcile Your Accounts
This is your “make sure everything adds up” moment. Go through your bank accounts, credit cards, and loans — make sure your books match your statements.
You’d be surprised how easy it is for small errors or missing transactions to slip through. Catching them now means fewer headaches come tax season.
Pro tip: If you use tools like QuickBooks or Xero, the built-in reconciliation features can make this super quick.
2. Review Your Financial Statements
Take a peek at your profit and loss, balance sheet, and cash flow reports. Don’t worry — you don’t have to be a CPA to spot the big stuff.
Ask yourself:
Did I hit my income goals?
Did any expenses sneak up on me?
Am I happy with my profit margins?
This gives you a clear snapshot of how your business really did this year — not just how it felt.
3. Get Those Receipts in Order
Receipts: everyone’s least favorite part, but totally necessary. Make sure everything is organized, labeled, and backed up.
Scan paper receipts, upload them to your accounting app, and double-check things like mileage, travel, or new equipment. Having everything tidy will make tax time so much easier.
4. Check Payroll and Contractor Info
If you have employees or work with freelancers, now’s the time to make sure everything’s accurate. Verify addresses, totals, and tax details for your team so your W-2s and 1099s are ready to go in January.
Nothing’s worse than chasing down last-minute paperwork when you’re supposed to be relaxing over the holidays.
5. Talk Taxes Before It’s Too Late
Don’t wait until the new year to think about taxes — a few smart moves before December 31 can save you a bundle.
Ask your accountant things like:
Should I buy equipment now or wait until next year?
Are there any credits I’m missing out on?
Should I defer any income?
It’s always better to plan before the year is over, not after.
6. Review Your Budget (and Celebrate Your Wins!)
Take a look at how your budget stacked up against reality. Did you overspend anywhere? Did some things go better than expected?
Use what you learn to make next year’s plan even stronger. And don’t forget to celebrate the progress you made — even small wins count!
7. Count Your Inventory (If You Have One)
If you sell products, this one’s a must. Do a full inventory count before year-end so you know what’s in stock, what’s missing, and what’s not selling.
It’ll help you prep for tax reporting and make smarter buying decisions next year.
8. Clean Up Invoices and Bills
Check your accounts receivable (who owes you money) and payables (who you owe). Send gentle reminders for unpaid invoices and settle up on overdue bills.
It feels good to start the new year with a clean slate — and balanced books.
9. Back Up Your Data
Whether you’re cloud-based or old-school, make sure your financial data is backed up and secure. Losing records right before tax time would be a nightmare.
A quick backup now = peace of mind later.
10. Have a Chat With Your Accountant or Bookkeeper
Before you wrap up the year, schedule a quick check-in. A professional can help spot deductions, flag potential issues, or just make sure everything looks good heading into tax season.
Think of it as your financial “end-of-year tune-up.”
Wrapping It Up 🎁
Doing a little year-end financial cleanup might not be the most exciting task — but trust me, it’s worth it. You’ll start the new year organized, confident, and ready to hit your next business goals running.
A little prep now means fewer surprises (and maybe even a bigger refund) later.
Here’s to closing the books on a great year — and setting the stage for an even better one ahead! 🥂
