Top 5 Year-End Accounting Tips

With the end of year approaching, it’s important to ensure your accounting records are in order to avoid unnecessary work and stress, during an already busy time of year!  


Make sure you have reconciled each of the following accounts:
          • Bank Accounts
          • Stripe, PayPal or Other Payment Accounts
          • Credit Cards
          • Loan Accounts



Accounts Receivable
          • Do all balances seem reasonable based on what you believe your customers owe?
          • Are there any customer balances to write-off?
          • Do you need to follow up to get payment in the door?
Accounts Payable
          • Do all balances seem reasonable based on what you believe you owe to a vendor?
          • Are there any old credits lingering that you should apply to your next vendor payment?



You should have support for each balance on your balance sheet to ensure the balance is accurate.
          • Reconciliations for all bank, credit card, loan accounts – basically any account where you receive a third-party statement to reconcile your balance to.
          • For all other accounts, you should have support to tell you what is included in each account. For example, for Prepaid Insurance, your balance should be equal to whatever you’ve paid to the carrier that you haven’t yet used. If you paid your full premium of $10,000 in July, and the policy does not expire until June 30th, you should have $5,000 left in your prepaid balance.
          • Have support for every balance on your balance sheet. Ensuring your balance sheet is accurate at year-end will tell you that your profit and loss statement is correct.


» 4. PLAN

Meet with your CPA before year-end to determine your estimated tax liability, any adjustments you can make to affect your tax situation, and looking forward to the next year.
          • Forecast the year ahead. Work with your team and create a budget for the upcoming year. Determine how major initiatives might affect your financial performance in the coming year. Budget for any new hires you might need to support your growth. Plan for any significant capital purchases.



          • Don’t wait until December 31st to start thinking about year-end activities.
          • Make sure your accounting is up to date through current so you’re not catching up 5 months of accounting all in January.
          • Start your budget in Q4, so that you’re just making minor adjustments in the last weeks of the year.
          • Follow up on vendor W9s so that you’re ready for sending out 1099s.
          • Review preliminary W2s to ensure accuracy.
          • Pull together support for any major transactions (large purchases, loans, or write-offs) that your CPA may want to review as a part of your tax preparation.


Year-end is a busy time for accounting, but it doesn’t have to be stressful. Preparation and planning are key to a smooth year-end.


Written By: Shauna Huntington