Year-End Bookkeeping Checklist for Small Business Owners

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The end of the year can be crazy for small business owners. Between wrapping up your tax documents and dealing with the holiday rush, your bookkeeping could take a back seat during this time.

Before you get overwhelmed, here is a quick checklist to help you get back on track.

Catch up on your Books

First, get your books caught up. You need up-to-date books to make important decisions and know how your company is doing.

To get your books caught up, make sure all bills and invoices are entered, reconcile your bank and credit card statements, and record any expenses you covered with personal funds.

Don’t worry if you’re behind on your books, but try to get caught up quickly to make it easier on yourself.

Gather Year-End Forms

You’ll need specific forms to file your taxes as you close your books. Having the following forms immediately will help you stay on track.


You must send out W-2s for all employees. You must send the documents to the IRS too, and there’s a strict deadline of January 31st, so don’t delay.


If you paid any independent contractors, you must send them IRS Form 1099-NEC if you paid $600 or more. All independent contractors should have given you their W-9s to help you complete their 1099s.

Schedule K-1

You must send a Schedule K-1 to all shareholders by March 15th. Again, your CPA can help you with this document.

Form 1099-K

If you receive payments from any third-party networks, like PayPal or Stripe, you’ll receive a 1099-K. You will use this form to file your taxes.

If you used any platforms to hire freelancers, you might not have to send a 1099 to them because the platform will, but any freelancers you hired outside of the platforms must receive a 1099 from you if you paid them more than $600.

Collect Unpaid Invoices

If you have unpaid invoices, do your part to get the payments in before closing the year.

Take Inventory

Take inventory before year-end to ensure your balance sheet and books match. Not only will you reconcile, but taking inventory will help you determine what you might do differently in the new year.

Use your Financial Statements to Review your Year

Look over your financial statements to determine how your year went. Should you change anything moving forward? Did you make any positive changes? What will you continue doing moving forward? This will help you plan for the future success of your business.

Final Thoughts

As a final step, don’t forget to get support. Closing out your books for the year is a big deal, and it’s easy to get overwhelmed. But I’m here to help you every step of the way. Contact me today to see how I can help!



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