What Should I Do at the End of the Year?
Wrap up your business year with confidence, not chaos.
As the end of the year approaches, it’s easy to get caught up in the holidays and push your books to the back burner. But if you want to hit the ground running in January (and avoid headaches at tax time) now is the time to take action.
Here’s a simple checklist for what you should do at the end of the year as a small business owner (especially if you’re a solo operator or service-based business).
1. Reconcile Your Accounts
Make sure your bank accounts, credit cards, and any payment platforms (like PayPal, Stripe, etc.) are fully reconciled through the end of December.
This ensures:
All income and expenses are accounted for
Your books match your bank
Your financial reports are accurate
2. Review Income and Expenses
Take a look at your Profit & Loss report. Ask:
How much money did I bring in this year?
What were my biggest expenses?
Did I actually make a profit?
This is a great time to spot trends and fix mistakes before filing taxes.
3. Categorize & Clean Up
Make sure all transactions are:
Categorized correctly (don’t leave anything uncategorized!)
Labeled accurately (especially asset purchases or reimbursements)
Free from personal expenses (if any slipped in, mark them clearly)
Tip: Cleaning up now prevents your tax preparer from charging extra later.
4. Send Final Invoices & Collect Payments
Make sure all your clients are billed and follow up on any outstanding invoices.
You want all of your revenue counted in this tax year, not forgotten in January.
5. Back Up & Save Key Documents
Download and store:
Bank and credit card statements
Loan documents
Receipts for major purchases
Any tax-related paperwork
Your Profit & Loss and Balance Sheet reports
Cloud backups are great, but also consider a secure offline copy just in case.
6. Review Your Tax Situation
Before the clock hits midnight on December 31:
Consider any last-minute deductible purchases
Make contributions to your retirement accounts
Talk to a CPA if you’re unsure about your tax position
A few smart moves in December can save thousands in April.
7. Set Goals for the New Year
Now that you’ve looked at your numbers…what’s next?
Do you need to raise prices?
Can you afford to hire help?
Are there expenses you can cut?
Use your books to set realistic, data-driven goals for the next year.
Bonus: Schedule a Bookkeeping Health Check
If you’re not confident your books are accurate, or if you’ve fallen behind, now’s the time to clean them up before tax season.
Don’t wait until March. December is the perfect time to get organized.
Need Help?
I help small business owners clean up their books, reconcile accounts, and prep for tax season all without the stress and overwhelm.
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or send us an email at David@RuckandReconcile.com
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And as always, thanks for reading and we’ll see you next week!