As the year winds down, so does the window to get your finances in order before tax season. For many business owners, this can feel overwhelming—but it doesn’t have to be. With the right preparation, you can walk into tax season confident, organized, and ready to maximize deductions without the last-minute scramble.

Here are 7 steps to prepare your books for year-end and tax season:

1. Reconcile Your Accounts

Make sure your bank accounts, credit cards, and payment platforms (like PayPal or Square) match your bookkeeping records. Reconciling helps you catch errors, missing transactions, or duplicate entries before they become bigger problems.

2. Review Your Income & Expenses

Go through your transactions to ensure everything is categorized correctly. Ask yourself:

• Are personal expenses separated from business?

• Are recurring expenses labeled in the right accounts?
  Accurate categorization means cleaner reports and easier tax filing.

3. Check for Outstanding Invoices & Bills

Look at your accounts receivable and accounts payable.

• Follow up on unpaid invoices to collect any outstanding income.

• Pay off bills or record them properly to reflect accurate year-end liabilities.

4. Organize Receipts & Supporting Documents

Digital or paper, your receipts are proof for tax deductions. If you haven’t already, use this time to upload, scan, or attach receipts to transactions in your accounting software.

5. Review Payroll & Contractor Payments

If you have employees or contractors, double-check payroll records. Remember:

• Form W-2s must go out to employees by January 31.

• Form 1099-NECs must go out to contractors by January 31.

6. Evaluate Your Financial Reports

Run your Profit & Loss Statement and Balance Sheet. These reports give you a snapshot of how your business performed. Reviewing them before year-end helps you and your tax preparer make smarter financial decisions.

7. Consult Your Accountant or Bookkeeping Expert

Don’t wait until tax day to ask for help. A year-end review with your accountant or bookkeeping expert can uncover opportunities for deductions, tax credits, and planning for the upcoming year.

Final Thoughts

Year-end doesn’t have to be stressful. It may not be your favorite thing to do, but by putting in the time now, you’ll save yourself hours of frustration later—and potentially save money on taxes, too. Preparing your books early not only helps with compliance but also gives you clarity and confidence as you step into the new year.

Contact us today to learn how we can help your business thrive!