Start Strong

As the new year kicks off, one of the most valuable things you can do for your business is to close out your prior year’s financials. December isn’t just the final month of the calendar—it’s your last opportunity to make sure everything is accurate, organized, and ready for tax time. Taking the time to reconcile and review your books now sets the stage for smarter decisions and a less stressful year ahead.

Here are four key steps to wrap up your December financials properly:

1. Reconcile All Accounts
Make sure all bank and credit card statements through December 31 are fully reconciled. This ensures that your books match actual account activity and that there are no missing or duplicate transactions.

2. Categorize Income and Expenses Accurately
Go through your income and expense transactions from the year to confirm everything is categorized correctly. Clean, accurate data leads to more meaningful financial reports—and fewer surprises during tax prep.

3. Review Financial Reports
Pull and review your Profit & Loss Statement and Balance Sheet for the full year. Look for anything that seems off, like unusual balances, missing expense categories, or negative numbers in the wrong places.

4. Lock the Books (If Applicable)
If your accounting software allows it, lock the books for the prior year once everything has been reviewed and finalized. This prevents accidental changes to historical data and helps maintain the integrity of your financial records.

Closing out December isn’t just about compliance—it’s about clarity. Starting the new year with clean books means you’ll be better prepared for tax filings, budgeting, and making confident business decisions.