Bookkeeping Checklist: Closing Out Your 2025 Financials

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  1. Reconcile All Accounts

  • • Bank Accounts: Match your bank statements with your accounting records to ensure there are no discrepancies.
  • • Credit Cards: Verify all charges and payments are recorded accurately.
  • • Loans and Lines of Credit: Confirm balances and interest payments are up to date.
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  2. Review Income and Expenses

  • • Categorize Transactions: Ensure all income and expenses are properly categorized for tax purposes.
  • • Identify Missing Transactions: Double-check for any unrecorded income or expenses.
  • • Spot Trends: Analyze spending patterns to identify cost-saving opportunities for 2026.
  • • • Clean Up Suspense and Clearing Accounts: Move any transactions sitting in suspense or clearing accounts to their correct categories. These accounts should have a zero balance at year-end.
    • • Reconcile Third-Party Payment Processor Balances: Compare your accounting records to 1099-K reports and balances from platforms like PayPal, Stripe, or Square, and resolve any discrepancies to ensure accurate income reporting.
    • • Verify Expense Allocations: Check that recurring expenses (like subscriptions or utilities) are allocated to the right accounts.
    • • Review Owner Draws and Contributions: Confirm these are properly recorded and not mixed with business expenses.
    • • Check for Duplicate or Miscoded Transactions: Run a quick audit to catch errors that could distort your financial statements.
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  3. Verify Accounts Receivable and Payable

  • • Outstanding Invoices: Follow up on unpaid invoices to improve cash flow.
  • • Pending Bills: Pay any outstanding bills to avoid late fees or penalties.
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  4. Update Payroll Records

  • • Employee Wages: Confirm all wages, bonuses, and benefits are recorded.
  • • Tax Withholdings: Ensure payroll taxes are accurate and filed on time.
  • • Contractor Payments: Prepare 1099 forms for contractors, if applicable.
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  5. Organize Tax Documents

  • • Receipts and Invoices: Gather all documentation needed for deductions.
  • • Tax Forms: Ensure W-2s, 1099s, and other required forms are ready for distribution.
  • • Consult Your Accountant: Schedule a meeting to review your records and discuss tax strategies.
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  6. Perform a Year-End Inventory

  • • Physical Count: Conduct a physical inventory count and compare it to your records.
  • • Adjust for Shrinkage: Record any discrepancies and adjust your books accordingly.
  • • Valuation: Update inventory values for accurate cost of goods sold (COGS) reporting.
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  7. Back Up Your Records

  • • Digital Files: Save copies of your financial records in a secure, cloud-based system.
  • • Paper Documents: Store hard copies in a safe, organized location.
  • • Data Security: Review your cybersecurity measures to protect sensitive information.
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  8. Prepare for 2026

  • • Set Financial Goals: Use your 2025 data to create a budget and set revenue targets for the new year.
  • • Clean Up Your Books: Archive old records and start fresh for 2026.
  • • Review Accounting Software: Ensure your tools are updated and meet your business needs.
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  Final Thoughts

  Closing out your financials doesn’t have to be overwhelming. By following this checklist, you’ll ensure your books are accurate, your taxes are prepared, and your business is ready to thrive in 2026. Take the time now to finish strong and set the stage for success in the year ahead!

   

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  ✅ Ready to Take Action?

  Don’t leave your year-end bookkeeping to chance. Let AllTax Accounting help you close your books, prepare for tax season, and plan for a successful 2026.
  📞 Call us at 443-406-6441 or Schedule a call below!

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