Don’t Close Out the Year Without Doing These 3 Things

As we approach the end of the year, now is the perfect time to get your books in order before tax season hits. Whether you manage your own finances or work with a bookkeeper, taking a few simple steps now can save you time, money, and headaches later.

Here are 3 important bookkeeping tasks you should complete before December 31st—and why they matter:

Organize and Categorize Expenses

• What to do: Clean up uncategorized expenses, upload missing receipts, and separate business vs. personal transactions.

• Why it matters: Proper categorization maximizes tax deductions and keeps you compliant. It also prevents red flags during an audit.

Reconcile All Accounts

• What to do: Reconcile your bank accounts, credit cards, loans, and payment platforms (PayPal, Stripe, Square).

• Why it matters: Ensures your financial records are accurate and complete before filing taxes. It also helps catch missing transactions or potential fraud.

Review Accounts Receivable & Payables

• What to do: Follow up on outstanding invoices and pay any vendor bills due before year-end.

• Why it matters: Improves cash flow, ensures accurate income reporting, and helps present a clean balance sheet going into the new year.