End of Year Checklist

 

Prepare Your Books for Year-End and Tax Season with Powers Bookkeeping Service. As the year comes to a close, it’s the perfect time to make sure your books are clean, accurate, and ready for tax season. A little preparation now can save hours of stress later — and help you start the new year with confidence. Here’s your step-by-step checklist from Powers Bookkeeping Service: 1. Reconcile All Bank and Credit Card Accounts Make sure every transaction in QuickBooks (or your bookkeeping system) matches your bank and credit card statements through December. This ensures your balances are accurate before you close the books. 2. Review and Categorize All Transactions Double-check that income and expenses are in the correct categories — especially for deductible items like: Office supplies Mileage and travel Equipment purchases Business meals and professional services Proper categorization helps maximize deductions and minimize red flags during tax prep. 3. Record Owner Contributions and Draws If you’re a sole proprietor or partnership, make sure all owner withdrawals and contributions are properly tracked. This ensures accurate equity reporting and avoids confusion during tax filing. 4. Review Accounts Receivable and Payables Send reminders for any outstanding client invoices. Pay any vendor bills due before year-end. Keeping these clean helps present an accurate financial picture for taxes — and improves your cash flow going into the new year. 5. Verify Payroll and Contractor Payments Confirm all employee wages, benefits, and taxes are properly recorded. Gather W-9s from any contractors you paid over $600 this year — you’ll need them for 1099 filing in January. 6. Update Asset and Depreciation Records Log any new equipment or property purchases and provide documentation to your tax preparer. This helps ensure you receive all eligible depreciation and Section 179 deductions. 7. Review Business Subscriptions and Expenses Take stock of recurring charges or unused services — cancel or adjust anything you no longer need before the new year. 8. Run Year-End Financial Reports Generate key reports for your records and tax preparation, including: Profit & Loss Statement Balance Sheet Cash Flow Report These give you and your tax preparer a complete view of your business health. 9. Back Up Your Financial Data Save a secure copy of your accounting files and financial documents. Cloud-based systems often do this automatically, but it’s smart to have a secondary backup for peace of mind. 10. Schedule a Year-End Review Set up a time with Powers Bookkeeping Service to review your books, address any discrepancies, and ensure you’re fully prepared for tax season. Start the new year organized, confident, and tax-ready. Let’s make sure your books tell the full story of your business success. Year-End Business Bookkeeping Checklist Get your books ready for tax season with Powers Bookkeeping Service Reconcile all accounts – Match your bank, credit card, and loan statements through year-end. Categorize income & expenses – Ensure all transactions are properly labeled for tax deductions. Record owner draws & contributions – Keep equity balances accurate and up to date. Review accounts receivable & payables – Collect outstanding invoices and pay open bills. Verify payroll & contractor payments – Double-check records and gather W-9s for 1099 filing. Update assets & depreciation – Record new equipment or property purchases. Audit recurring expenses – Cancel or adjust unused subscriptions. Run key reports – Profit & Loss, Balance Sheet, and Cash Flow for year-end review. Back up financial data – Save secure copies of your records and accounting files. Schedule your year-end review – Meet with Powers Bookkeeping Service to ensure your books are clean, accurate, and tax-ready. Start the new year organized and confident! Contact us today!