Quick answer
At year-end, reconcile all accounts through December, clean up categories, review customer and vendor balances, check contractor records and send your CPA the final reports and documents.
1Start in the final quarter
Do not wait until January. A few checks in the last quarter give you time to fix problems and make decisions before the year closes.
2The checklist
- Reconcile every bank, credit card and loan account through December
- Clear uncategorized and ask-my-accountant items
- Review unpaid customer invoices and decide on old balances
- Review unpaid vendor bills
- Check payroll reports and payroll tax payments
- Confirm W-9s and payments for contractors
- Review fixed asset purchases with your CPA
- Run the year-end profit and loss and balance sheet
- Save statements and records in an organized folder
3What your CPA needs
- Year-end profit and loss and balance sheet
- Bank and card statements
- Loan statements and payment records
- Payroll summaries
- Contractor payment totals
- Notes on unusual transactions
Tip
Ask your CPA for their preferred format and deadline. Sending it right the first time saves fees.
4Close the year
Once reviewed, lock the closed year in your software to avoid accidental changes. If your books are behind, a cleanup before tax season is worth planning early.
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