Closing the books at year-end can be overwhelming, especially for growing businesses. The key? Planning ahead. Here’s a simple checklist to help you wrap up your year with confidence and clarity.
1. Reconcile Bank and Credit Card Accounts
Make sure all accounts are reconciled through December. Match your books with statements to catch errors or missing transactions.
2. Review Accounts Payable and Receivable
Follow up on unpaid invoices and make sure vendor bills are recorded. Cleaning up AR/AP now avoids confusion when filing taxes.
3. Categorize All Transactions Properly
Ensure that income and expenses are posted to the correct accounts. This is key to accurate financial reporting — and a clean tax return.
4. Run Financial Reports
Generate a year-end P&L, balance sheet, and cash flow statement. These reports help you (and your CPA) understand the business’s health and spot any red flags.
5. Set Up a Meeting With Your Accountant
Go over potential tax strategies, estimated liabilities, and what to expect for next year. Planning before December 31st means more opportunity to act.
Conclusion:
A smooth close sets you up for a stronger start next year. Need help wrapping up your books?
Let Calm Ledger support your year-end process — book a session now.
