top of page
  • Instagram
  • LinkedIn
  • Facebook
Search

Close Your Books Before the Year Closes for You

Writer: Steve Julal
Steve Julal
4 hours ago
2 min read

As the year comes to an end, small business owners should make time to review their financial records and close out their books. Waiting until tax season to organize your finances can lead to missed deductions, unexpected tax liabilities, and unnecessary stress.

 

Taking a proactive approach now can help you understand how your business performed and prepare for the year ahead.

 

Here are a few steps to take before December 31:

  1. Reconcile Your Accounts. Review your bank and credit card statements to make sure they match your accounting records. Address outstanding transactions, duplicate entries, and discrepancies before they carry into the new year.


  2. Review Income and Expenses. Confirm that all revenue and business expenses have been properly recorded. Look for missing receipts, unpaid invoices, and expenses that may need to be categorized or corrected.


  3. Review Accounts Receivable and Payable. Identify outstanding customer payments and unpaid vendor bills. Understanding what is coming in and going out can help you better manage cash flow.


  4. Review Your Financial Reports. Take a closer look at your profit and loss statement and balance sheet. These reports can help you evaluate profitability, identify spending trends, and determine whether your business is on track to meet its financial goals.


  5. Prepare for Tax Season. Organize receipts, payroll records, contractor payments, and other supporting documents. Review your year-to-date financials with your tax professional to identify potential tax planning opportunities before the year closes.

 

Closing your book

Start the New Year with Clearer Numbers

Closing your books before December 31 is about more than preparing for tax season. It gives you a clearer picture of your business's financial health and helps you make informed decisions about budgeting, spending, and growth.

 

Don't wait until January to find out where your business stands. A little preparation now can make a significant difference in how you start the new year.

 

Need help getting your books in order? Connect with a VAAS Tax Professional to review your financial records and prepare your business for year-end.

bottom of page