Are You Ready for Year-End? Bookkeeping Tips for a Smooth Close

As the year winds down, most small business owners start turning their attention to the holidays, new goals, and maybe a well-deserved break. But before you close the books on 2025, there’s one thing that deserves your attention, your year-end bookkeeping. Getting your books in order before January not only saves headaches during tax season but also gives you valuable insights to start the new year strong.

At Eddington Financial Solutions, we help small business owners streamline their finances using QuickBooks Online so they can focus on growth, not paperwork. Here are the key steps you should take now to make year-end stress-free and set your business up for success in 2026.

1. Reconcile Every Account

Start by reconciling your bank accounts, credit cards, and loan balances. This ensures that what’s recorded in QuickBooks matches your financial statements from the bank.

• Compare your QuickBooks balances to your December statements.

• Look for missing or duplicate transactions.

• If something doesn’t line up, investigate it now, not in March when you’re racing to file taxes.

Think of reconciliation as your financial “check engine light,” it tells you when something’s off before it becomes a problem.

2. Categorize All Transactions

Uncategorized expenses are one of the biggest culprits behind inaccurate reports. Go through your income and expense transactions and assign them to the correct accounts.

QuickBooks Online makes this easy with bank rules and batch editing, saving you time and ensuring consistency. Clear categorization not only helps your accountant but also reveals where your money is actually going.

3. Gather and Store Receipts

If you have not been keeping digital copies of your receipts, now’s the time to catch up.

• Use QuickBooks Online’s receipt capture feature or apps like Hubdoc or Dext.

• Attach digital copies directly to transactions.

• Store them securely in the cloud for easy access during tax season or an audit.

Having a complete paper trail helps verify deductions and keeps you compliant with IRS recordkeeping requirements.

4. Review Accounts Receivable and Payables

Make sure your invoices are current and that you have followed up on any overdue payments. On the flip side, check your unpaid bills and make sure they are entered correctly. This helps paint a clear picture of what’s owed to you and what you owe others before year-end.

5. Verify Payroll and 1099 Information

If you pay employees or contractors, double-check your W-9s, 1099s, and payroll records. Make sure all information is accurate and up to date. QuickBooks Online’s payroll and contractor features can help automate this step, but reviewing it manually ensures there are no surprises later.

6. Schedule a Year-End Bookkeeping Review

Even if your books are in good shape, scheduling a year-end review with a professional bookkeeper can uncover hidden issues, tax-saving opportunities, or inefficiencies.

At Eddington Financial Solutions, we specialize in helping small businesses like yours boost profitability and make data-driven decisions through clear, organized financials.

7. Plan for the Year Ahead

Once your books are complete, take time to analyze your profit and loss statement and balance sheet.
Ask yourself:

• What expenses can I cut or renegotiate next year?

• Which revenue streams performed best?

• How can I use these numbers to plan for growth in 2026?

Your bookkeeping is not just about compliance; it is about clarity. And clarity is what leads to profitability.

Final Thoughts

Year-end can feel overwhelming, but with the right systems and support, it does not have to be. Whether you handle your bookkeeping yourself or partner with a professional, the key is to stay proactive.

If you are not sure where to start, consider scheduling a QuickBooks Online review with Eddington Financial Solutions. We will help ensure your books are accurate, your data is clean, and your 2026 financial goals are within reach.