Year-end accounting should not be a once-a-year scramble. A structured review gives owners a reliable financial picture, makes tax preparation more efficient, and identifies payroll, vendor, and cash-flow issues while there is still time to address them.
Finish the monthly close
Reconcile all bank, credit-card, loan, and payment-processor accounts. Review the balance sheet account by account and require support for material balances. Confirm that transfers, owner activity, and debt payments have been recorded correctly.
Clean up customers and vendors
Review open invoices, unapplied payments, old credits, and bad-debt candidates. On the vendor side, confirm unpaid bills, vendor names, addresses, and tax classifications. Request missing Forms W-9 before 1099 preparation becomes urgent.
Reconcile payroll and employee obligations
Compare payroll registers with wage expense, payroll tax accounts, benefit deductions, and cash payments. Review accrued vacation or paid time off where applicable and confirm that payroll-liability balances are current.
Count inventory and document major purchases
Businesses that carry inventory should perform and document a physical count. Gather invoices for equipment, vehicles, furniture, software implementations, and improvements so tax and accounting treatment can be evaluated.
Review the profit-and-loss statement
Compare 2025 with the prior year and budget. Investigate large changes in gross margin, labor, insurance, rent, professional fees, and owner-related accounts. A variance should have an operational explanation—not just an accounting code.
Build a tax-planning package
Provide the tax advisor with current financial statements, payroll reports, estimated tax payments, fixed-asset additions, debt information, and known changes in ownership or operations. Tax decisions depend on the business’s complete facts, so planning should happen before transactions are finalized.
Start a 13-week cash forecast
List expected collections, payroll dates, tax payments, debt service, and significant purchases. A short-term forecast helps owners see whether year-end distributions, bonuses, or equipment purchases fit the company’s actual cash needs.
Fogler CPA can manage the monthly close, clean up QuickBooks, coordinate year-end schedules, and create a repeatable process that keeps the books ready throughout the year.
This article provides general information and is not legal or tax advice. Requirements depend on specific facts and may change.