How to Prepare Your Books for Year-End Success

It’s that time of year again — wrapping up projects, planning for the holidays, and maybe even sneaking in a little downtime (hopefully!). But before you close the laptop and celebrate, there’s one big thing to check off your list: getting your books ready for year-end.

Tidying up your finances now will ease the stress of tax season and provide a clear overview of your business's performance this year. Let's go through it together, step by step.

1. Reconcile Bank and Credit Card Accounts  

Think of this as balancing your checkbook (remember those?). Set aside time to meticulously review your bank and credit card statements to ensure accuracy. Every transaction matches what’s in your bookkeeping software.

✅ Double-check that:

• Every transaction is categorized correctly.

• No duplicates slipped in.

• Any weird mismatches are investigated and fixed.

Pro tip: Doing this monthly — not just at year-end — saves a ton of time and stress later.

2. Catch Up on Invoices and Bills

Before the year ends, take stock of outstanding accounts.  

• Do you have clients who owe you? A gentle reminder goes a long way!  

• Are there bills you need to settle? Enter and pay—or at least schedule—those payments.  

Having tidy records gives you a genuine insight into your cash flow, no surprises when January rolls around.

3. Review and Categorize Your Expenses

Now’s the time to fix any “miscellaneous” or “uncategorized” expenses. (We’ve all been there.)

Go through your expenses and make sure they’re in the right categories. This helps you get every deduction you deserve — and keeps your tax pro from asking too many follow-up questions later.

Common spots to review:

• Personal vs. business purchases

• Meals vs. entertainment

• Office supplies vs. equipment

4. Check Payroll and Contractor Payments 

If you pay employees or contractors, double-check that everything’s accurate.

• Make sure all payroll taxes are filed.

• Confirm addresses and payment info are current.

• Get ready to send out those W-2s and 1099s early next year.

A little prep now saves you from scrambling in January.

5. Run Your Financial Reports

With your accounts in order, it’s time to generate some reports! Review your Profit & Loss statement, Balance Sheet, and Cash Flow Statement to assess your business's performance. 

Look for trends—maybe your revenue increased or specific expenses rose. These reports narrate the story of your business year and are invaluable for planning ahead.

6. Get Ready for Tax Season (Now, Not Later)

Gather your receipts, invoices, mileage logs, and anything else your accountant might need (including those crumpled receipts stashed in your car!). 

Consult your bookkeeper or CPA about any last-minute strategies to implement before December 31st, like prepaying expenses or contributing to retirement accounts for potential tax savings.

7. Set Yourself Up for a Strong New Year

Once your books are squared away, take a moment to celebrate your achievements! Then, leverage those insights to create effective plans for the upcoming year: 

• Develop a realistic budget.  

• Identify areas to save or boost revenue.  

• If bookkeeping has been a chore this past year, consider outsourcing it (we know just the right people 😉).

Wrapping It Up  

Wrapping up your books doesn’t have to be a daunting task. With a bit of organization—and maybe a couple cups of coffee—you can finish the year feeling confident and ready for what lies ahead. If you’d prefer to pass the baton to someone who thrives on keeping books tidy and accounts balanced, DKC Bookkeeping is here for you. Let’s make next year your most organized yet!