Your End-of-Year Business Finance Checklist
It’s that time of year again - closing out your books, reviewing your numbers, and making sure your small business is set up for success in the year ahead. If the phrase “end of year financial checklist for small business” has you breaking into a cold sweat, take a deep breath. We’ve got you covered.
Here’s a step-by-step guide to help you wrap up your business finances with confidence, avoid tax-time headaches, and start the new year strong.
🎯 Why an End of Year Financial Checklist Matters
Closing out your books isn’t just about crossing off tasks….it’s about understanding where your business stands, identifying areas for improvement, and setting realistic goals. A solid year-end review helps you:
✅ Stay compliant with tax laws
✅ Uncover hidden profits (or problem areas)
✅ Make smarter financial decisions
✅ Plan for growth in the new year
Let’s dive in.
📊 Your Small Business End of Year Financial Checklist
1️⃣ Reconcile All Accounts
Before you close the books, ensure every transaction is accounted for. This means reconciling your bank accounts, credit cards, loans, and payment processors like Stripe or PayPal. Double-check for any duplicate or missing entries.
🔍 Tip: If you use QuickBooks or another accounting software, run a reconciliation report for each account.
2️⃣ Review Your Profit & Loss (P&L) Statement
Your P&L tells the story of your business. Are you making money? Where are you spending the most? Identify trends, big wins, and areas where costs crept up.
Ask yourself:
Did revenue grow compared to last year?
What were your biggest expenses, and can you cut costs next year?
Are there any expenses that should be reclassified for tax savings?
3️⃣ Update and Organize Your Chart of Accounts
Your chart of accounts should accurately reflect your business activities. Delete unused accounts, merge duplicates, and ensure everything is categorized properly. This step makes tax time (and financial reporting) much smoother.
4️⃣ Check for Outstanding Invoices & Bills
Collect what you’re owed! Run an Accounts Receivable (A/R) aging report and follow up on unpaid invoices. On the flip side, review your Accounts Payable (A/P) and pay any outstanding bills to avoid late fees and interest.
5️⃣ Prepare for Tax Season
The sooner you gather your tax documents, the easier life will be in the new year. Your end of year tax prep checklist should include:
✅ Profit & Loss statement
✅ Balance Sheet
✅ 1099s for contractors (due January 31!)
✅ Any big asset purchases for depreciation
✅ Mileage logs or home office deductions
✅ Payroll reports and tax filings
💡 Bonus Tip: Consider meeting with your CPA or tax advisor in December to strategize tax-saving moves before the year closes.
6️⃣ Review Your Budget vs. Actuals
How did your actual income and expenses compare to your budget? Reviewing this helps you create a smarter, more realistic budget for next year. Adjust for any unexpected changes, whether it’s higher marketing costs or a surprise drop in sales.
7️⃣ Set Financial Goals for the New Year
Once you’ve reviewed your numbers, set your goals:
Do you want to increase revenue by 20%?
Cut expenses by 10%?
Invest in a new tool or hire help?
Write these goals down and create an action plan.
🌟 Bonus: Tools to Make Year-End Easier
Here are some tools that can help you tackle your year-end checklist:
✅ QuickBooks Online – For reconciling accounts and financial reporting
✅ Gusto or ADP – For payroll reports and tax filings
✅ Relay or Novo – For business banking
✅ Google Sheets or Excel – For budgeting and goal-setting
🎉 Wrapping It Up
Your end of year financial checklist doesn’t have to feel overwhelming. By following these steps, you’ll close your books with confidence, avoid costly mistakes, and start the new year with a clear financial picture.
👉 Ready to stay ahead of your business finances year-round? Subscribe to the Tea on the Ledger newsletter for practical tips, resources, and strategies sent straight to your inbox.
