As we near the end of the year, many small business owners are focused on finishing strong—whether that means closing out projects, hitting sales goals, or preparing for the holidays.
But one thing you shouldn’t put off until January? Checking in on your bookkeeping.
Waiting until tax season to look at your books can lead to stress, missed deductions, and surprises you’d rather avoid. The good news? You don’t need to be a CPA to do a quick check-up.
Here are five simple steps you can take right now to see if your books are in good shape heading into year-end:
1. Reconcile Your Bank and Credit Card Accounts
Your bookkeeping software should match what’s actually in your bank and credit card accounts.
If it doesn’t? Something’s off—and needs to be fixed before year-end.
Quick check:
- Are all accounts reconciled through the most recent statement?
- Do any balances in your accounting software not match your real account balances?
If things aren’t lining up, that’s a red flag. Reconciling regularly keeps your financials accurate and makes tax prep easier.
2. Review Outstanding Invoices and Bills
Unpaid invoices = potential cash flow problems. Unpaid bills = incomplete expense tracking.
Take a few minutes to:
- Look at your Accounts Receivable—any old invoices that need follow-up?
- Review Accounts Payable—have you recorded all outstanding bills?
Cleaning this up now helps ensure your income and expenses are properly recorded before the books close.
3. Check for Uncategorized or Miscategorized Transactions
Most bookkeeping software will show “Uncategorized Expense” or “Ask My Accountant” for transactions that haven’t been reviewed.
Look out for:
- Expenses sitting in the wrong category
- Missing vendor or customer names
- Duplicate transactions
Accurate categorization matters—it affects how much tax you owe and which deductions you can take.
4. Review Your Profit & Loss Statement
Your Profit & Loss (P&L) is one of the most useful reports for understanding your business health.
Look for:
- Any major expense categories that seem off
- Revenue that’s missing or inconsistent
- Negative numbers where they shouldn’t be
A monthly or year-to-date P&L review helps you make better decisions before the year wraps up.
5. Back Up Your Data
It sounds simple, but backing up your accounting files is one of the best things you can do to protect your business.
Whether you’re using QuickBooks Desktop, cloud software, or spreadsheets—make sure you have a secure copy of your data saved. Better safe than scrambling.
Bonus Tip: Ask for Help if You’re Behind
Behind on your books? You’re not alone—and we’re here to help.
At J.A. Green Accounting, we work with small businesses across Waco and beyond to get caught up, cleaned up, and ready for year-end. No judgment. Just support.
Let’s Wrap the Year Up Right
The end of the year doesn’t have to come with panic. With a quick bookkeeping check-up, you’ll feel more prepared—whether you’re handling your own books or working with a professional.
Need help reviewing your books or getting caught up before tax season?
📞 Schedule a free consultation or send us a message. We’d love to help.
Disclaimer: This blog post is intended for informational purposes only and does not constitute financial or tax advice. For advice specific to your situation, please contact a licensed accounting professional.
