Year-End Bookkeeping Checklist (2025): A Simple Guide for a Smooth Tax Season
December doesn’t have to mean long nights and last-minute panic. Use this practical checklist to close 2025 confidently and set yourself up for a strong start to 2026.
1. Reconcile everything
Bank accounts, credit cards, loans, payment processors (Stripe/PayPal/Square). Make sure ending balances match statements and every transaction is categorized.
2. Clean up A/R and A/P
Send final reminders for unpaid invoices and write off truly uncollectible amounts (with your CPA’s guidance).
Pay outstanding vendor bills or confirm what will roll into January.
3. 1099 readiness (contractors & vendors)
Collect or confirm W-9s now.
Verify totals paid to each contractor (generally ≥ $600) and their payment method (card/PayPal may be reported by processors).
Prep your 1099-NEC/1099-MISC list so filing in January is painless.
4. Payroll wrap-up
Confirm final payroll dates, year-to-date totals, benefits, and owner draws. Ensure addresses and SSNs are correct for W-2s. Align with your payroll provider on year-end reports.
5. Inventory & COGS (if applicable)
Do a physical count, adjust shrink/damage, and tie out inventory to your books so COGS is accurate for the year.
6. Fixed assets & year-end purchases
Log new equipment/software, keep invoices, and flag items for capitalization/depreciation (ask your CPA about Section 179/bonus depreciation). Don’t buy just for a deduction—buy what moves the business forward.
7. Expense review & supporting docs
Tighten categories, attach receipts, and tag business vs. personal. Clean backup now = faster taxes and fewer questions later.
8. Tax planning (before 12/31)
Quick check-in with your CPA to estimate tax liability, refine quarterly payments, and consider timing for retirement contributions, bonuses, or charitable giving.
9. Back up, document, and close
Export year-end reports (P&L, Balance Sheet, Cash Flow, General Ledger). Save to secure cloud storage, document any year-end journal entries, and set your closing date in QuickBooks to prevent accidental changes.
10. Plan 2026 budgets & KPIs
Use this year’s numbers to set realistic revenue targets, spending plans, and a simple scorecard (e.g., gross margin, A/R days, net profit, cash runway).
Final Thoughts
A clear year-end process turns tax season from stressful to straightforward. If you’d like an expert to review your books—or handle the whole checklist—Synergy Bookkeeping is here to help.
👉 Ready for a smooth year-end? Book a free consultation and let’s get your books buttoned up.
