If you’re a small business owner, the end of the year probably brings two things: gratitude for how far you’ve come and a low-grade panic about everything left undone.
Before you dive headfirst into holiday season chaos, this is the perfect window to get your financial house in order. Because while December may be full of celebrations, January is full of tax prep and what you do now determines how painful (or painless) that will be.
Let’s walk through seven smart bookkeeping moves that can turn a scramble into a smooth finish.
1. Reconcile your accounts… every last one
Start by making sure your books actually match your bank.
Reconcile every account (checking, credit card, PayPal) so what’s recorded in your software mirrors your actual balance. It sounds tedious, but it’s the single best way to catch missing deposits, duplicate expenses, or subscription charges you forgot you were still paying for.
If you haven’t reconciled monthly, start with the most recent quarter and work backward. You’ll feel the fog lift almost immediately.
2. Simplify your chart of accounts
Think of your chart of accounts as the backbone of your bookkeeping. If it’s cluttered, confusing, or inconsistent, your reports will be too.
Combine redundant categories (for example, “Office Supplies” and “Office Expense”). Remove anything irrelevant to your business. The goal is to make your chart simple enough that anyone… your CPA, your bookkeeper, even your future self… can understand it at a glance.
Example: Instead of lumping all expenses into “Marketing,” create subcategories like “Advertising,” “Printing,” and “Client Gifts.” You’ll gain real insight into where your marketing dollars actually go.
3. Collect what you’re owed
There’s no better feeling than closing out the year with money that was once hanging in limbo.
Run an A/R (Accounts Receivable) report and flag every unpaid invoice. Then, reach out to clients with a polite but firm reminder. You can even frame it around your year-end process:
“As we close our books for 2025, I noticed this invoice is still open. Could you confirm when payment will be made?”
A little professionalism goes a long way and you might be surprised how many payments land just because you asked.
4. Review payroll and contractor details
Before W-2s and 1099s come into play, double-check that every employee and contractor’s information is accurate. Confirm addresses, total amounts paid, and tax ID numbers.
Catching a typo now can save hours of cleanup later. And if you’ve onboarded anyone mid-year, make sure they’re classified correctly. It’s a common area where small businesses get tripped up at tax time.
5. Make sure deductions tell the whole story
You’d be amazed how much money is left on the table each year because business owners forget to document legitimate deductions.
Go back through your transactions and attach supporting receipts, especially for travel, equipment, and education. If you work with a home office, don’t skip mileage, internet, or utility percentages. Those small amounts add up quickly.
The rule of thumb: if it’s necessary to run your business and you can prove it, it’s worth recording.
6. Look at the big picture before the year ends
Once everything is tidy, pull a Profit & Loss statement and spend a few minutes actually looking at it.
- Where did you spend more than expected?
- Which services or products brought in the most revenue?
- Did your cash flow fluctuate in certain months?
These insights are your early warning system and your opportunity map for next year. Maybe it’s time to raise prices, trim recurring costs, or shift marketing focus. You can’t fix what you don’t measure.
7. Get help if you’ve fallen behind
If your bookkeeping feels like a lost cause, this is the moment to call in backup. A professional bookkeeper can clean up your accounts, categorize your expenses correctly, and prepare everything your CPA will need for tax filing.
Yes, it’s an investment, but it’s one that pays for itself in accuracy, time saved, and tax deductions you might have missed.
A quick recap
- Reconcile every account now, not later.
- Simplify your chart of accounts so you can actually use it.
- Collect unpaid invoices and review payroll before January.
- Make sure every deduction is properly documented.
- Look at your numbers and learn from them.
Small, intentional steps taken now make a massive difference when the calendar flips.
Final thought
Bookkeeping isn’t just about staying compliant. It’s about running your business with clarity and control. Year-end is your chance to hit reset, make better decisions, and enter 2026 with financial peace of mind.Ready to start the new year organized, not overwhelmed?
Let TEVA Bookkeeping handle the details so you can focus on what you do best… running your business. Schedule your year-end review today.