How to Prepare for Year-End Close (Without the Panic)

Every December, companies scramble. Accruals need posting, fixed assets need reviewing, prepaid expenses need adjusting, and the bookkeeper is on vacation. Year-end close doesn’t have to be a crisis, it just requires preparation starting in October.

The October Checklist

• Verify all bank accounts are reconciled through September
• Review your fixed asset register, are there assets that need to be written off or fully depreciated?
• Confirm all intercompany balances are reconciled
• Start gathering 1099 contractor information
• Review deferred revenue schedules for accuracy

The November Checklist

• Reconcile all payroll reports to GL
• Review prepaid expense amortization schedules
• Confirm sales tax filings are current
• Prepare preliminary year-end adjusting entries
• Schedule time with your CPA for year-end planning

The December/January Checklist

• Post all year-end accruals (bonuses, commissions, vacation)
• Finalize depreciation and amortization entries
• Complete physical inventory count (if applicable)
• Reconcile all balance sheet accounts
• Prepare draft financial statements for CPA review

Do This Monday

1. Check: are your books current through last month? If not, catch up before year-end compounds the backlog.
2. Schedule a year-end planning call with your CPA or accounting team for early November.
3. Create a shared checklist with your finance team. Assign owners and deadlines for each item.

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