Closing your books properly at year-end sets you up for accurate tax returns, better budgeting, and smoother audits. Use this checklist before December 31.
Reconcile all accounts
Bank, credit card, loan, and payroll accounts should match statements. Resolve outstanding checks and deposits in transit.
Review accounts receivable and payable
Write off uncollectible invoices with documentation. Accrue expenses incurred but not yet billed. Confirm vendor 1099 / T4A requirements.
Physical inventory and fixed assets
Count inventory if applicable and adjust for shrinkage. Update depreciation schedules for new equipment and disposals.
Document adjustments for your CPA
Provide a summary of large transactions, related-party payments, and owner draws. Clear communication reduces back-and-forth in busy season.