As the year winds down, things tend to speed up for business owners. One minute you're wrapping up holiday orders or sending final invoices… the next, your accountant is asking for receipts, reconciliations, and year-end reports.
The good news? Year-end bookkeeping doesn't have to be stressful. With a clear process and the right timing, you can prepare efficiently and avoid last-minute chaos.
This guide walks you through what to gather, what to update, and the common areas where most businesses get stuck—so you can close your year with confidence and clarity.
Before running reports or making adjustments, ask yourself one key question:
Do I have all the documents that support my business activity this year?
Most businesses will need to collect:
• Bank and credit card statements
• Loan statements and amortization schedules
• Payroll records and T4 preparation files
• Business expense receipts
• POS or invoicing sales reports
• Vendor bills and subcontractor invoices
• Mileage or vehicle-use logs
• Year-end inventory figures
• Capital asset purchase records
Missing paperwork is the number-one cause of year-end delays. Starting early helps you close your books accurately and without stress.
Year-end isn't just paperwork—it affects almost every financial decision you'll make in the upcoming year. Clean, accurate books support:
• Tax preparation
• Financial statements
• Loan and financing applications
• Budget planning
• Payroll reconciliations
• Shareholder and owner distribution
Good bookkeeping reduces risk and gives your business a solid foundation for the new year.
Here are the key tasks to complete before closing your year:
1. Reconcile all accounts
Banks, credit cards, loans, and payment platforms such as PayPal, Stripe, and Square should match your books accurately.
2. Review accounts receivable & payable
Check who owes you money and who you owe. Write off uncollectible invoices if necessary.
3. Update payroll records
Confirm that T4 totals, WSIB, CPP, EI, and taxable benefits are correct.
4. Track capital asset purchases
Missing these records can result in lost depreciation deductions at tax time.
5. Verify owner transactions
Ensure owner draws, shareholder loans, and personal vs. business expenses are properly classified.
6. Adjust inventory
A correct year-end inventory count ensures your cost of goods sold (COGS) is accurate and not overstated.
Your accountant may still need to record adjustments such as:
• Accrued expenses
• Deferred revenue
• Amortization
• Interest adjustments
• Prepaid expenses
• Bad debt write-offs
These entries ensure your financial statements reflect your true financial position.
A business owner once waited until March to gather documents. Her books hadn't been reconciled since June.
It took three times the usual amount of work to clean everything up—resulting in higher bookkeeping fees, late tax filing, and lost deductions from misplaced receipts.
The following year, she used a simple preparation checklist.
Her year-end was done in less than a week.
Preparation really does pay off.
TandemBooks can help you tackle your year-end cleanup, prepare accurate financial records, and stay fully compliant. We offer support with Specialty Bookkeeping, Law Firm Bookkeeping, Payroll Management, Consulting and Advisory, Business Start-Up, and Income Tax Preparation.
Start the new year on the right foot—contact TandemBooks today.
Contact us today to schedule your year-end bookkeeping review!
