Year-End Bookkeeping Tips for Small Business Owners

The end of the year always sneaks up fast — especially when you're running a business. Between wrapping up projects, handling holiday rushes, or planning for next year, it’s easy for bookkeeping to slide down the to-do list.

But here’s the truth: taking a little time now to clean up your books will make tax season smoother, stress levels lower, and next-year-you very grateful.

Here are some simple, practical steps to get your finances in order before year-end.

1. Reconcile Your Bank & Credit Card Accounts. Make sure all your business bank accounts, PayPal, Stripe, and credit cards match what’s recorded in your accounting software.

If there's even a few cents off — now’s the time to find it!

2. Record All Expenses (yes, every last coffee meeting). Go through your receipts, mileage, and digital payments.

Check for:

• Software and subscriptions

• Business meals & travel

• Supplies and equipment

• Online purchases (Amazon, Canva, printers, etc.)

• Phone & internet expenses

Tip: If you paid for business expenses personally — add those too.

3. Send Outstanding Invoices & Follow Up on Payments. Cash flow starts with getting paid.

Before year-end, send any unbilled invoices, follow up on overdue ones, and offer an easy payment link if possible. You deserve to get paid for work completed this year.

4. Review Income & Expenses. Look at your year as a whole. This gives you clarity and helps with planning for next year. Ask yourself questions such as:

• What were your biggest income sources?

• Where did most expenses go?

• Any tools you're not using anymore? Cancel them!

• Any potential write-offs you forgot?

5. Gather & Organize Receipts. Digital or paper — just make sure you have them.

Create folders like:

2025 Receipts 

> Meals 

> Software 

> Office supplies 

> Travel

Future-you is already smiling.

6. Check Payroll & Contractor Payments. If you pay employees or contractors, make sure records are accurate.

Make note of:

• T4s & T5018s (Canada)

• Independent contractor totals

• Payroll taxes paid

7. Review Your Tax Deductions. Talk to your accountant or tax professional if you're unsure, but don’t forget common deductions like:

• Home office space

• Software subscriptions

• Office supplies

• Professional fees

• Advertising & marketing

Sometimes the little deductions add up to big savings.

8. Plan for Next Year. Once you know your numbers, you can set goals with confidence.

Ask yourself:

• What systems worked?

• What needs to improve?

• Do you need bookkeeping support next year?

• What financial goals do you want to hit?

  
  

Final Tip: Don’t Wait Until Tax Season. Even if things feel messy right now — that’s okay. Taking one step today is better than waiting until April in panic mode.

And hey — if bookkeeping isn’t your favorite task… you don't have to do it alone!