2025 Year End Bookkeeping Checklist for Small Business Bookkeepers

As the calendar closes, bookkeepers across California — and across the country — shift into their busiest season. Clean records, accurate reports, and well-organized financials make tax filing easier for your clients and reduce your workload during the most high-pressure months. This year end bookkeeping checklist is designed for bookkeepers who want a clearer, smoother, and more strategic year-end process, no matter where they’re located.

At Simplicity Financial, we support bookkeepers and small business owners remotely throughout California and the U.S.

Why a Strong Year End Bookkeeping Checklist Matters

A detailed year end bookkeeping checklist helps bookkeepers reduce errors, close books accurately, and prepare clients for tax season with confidence. It also ensures compliance with IRS guidelines and creates a smooth handoff to tax professionals.

If you want more structure for planning, our article on when Q4 starts can help you stay ahead of key deadlines.

Need help with year-end cleanup? Contact Simplicity Financial today for support that saves time and stress.

Year End Bookkeeping Checklist: The Complete 2025 Process

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Below is a structured, step-by-step year end bookkeeping checklist that works for every type of small business — retail shops, contractors, churches, nonprofits, e-commerce stores, and growing startups.

Step 1: Reconcile Every Account in Your End of Year Bookkeeping Checklist

Reconciliation is the foundation of your end of year bookkeeping checklist.

Confirm:

• Bank accounts
• Credit cards
• Payment processors
• Cash on hand
• Payroll accounts

If your client’s books are messy or behind, our outsourced bookkeeping services can help stabilize their system before tax filings begin.

Business Examples

• Game Stores: match in-store sales to online orders using our guide to bookkeeping for game stores.
• Contractors: verify deposits by project or invoice.
• Churches: reconcile tithes and offerings using our church bookkeeping framework.

Step 2: Review Income Categories Using Best Practices for Organizing Bookkeeping for Year-End Taxes

Accurate income categorization is one of the best practices for organizing bookkeeping for year-end taxes.

Check:

• Deposits
• Invoice dates
• Unapplied payments
• Revenue categories
• Grants or donor income (for nonprofits)

If you work with nonprofit clients, our guide to bookkeeping for nonprofits offers extra support for reporting requirements.

Step 3: Clean Up Vendor Records on Your Bookkeeping Year End Checklist

Your bookkeeping year end checklist should include verifying:

• Vendor names
• Tax IDs
• W-9 forms
• 1099-eligible payments

This is essential for accurate 1099 filings. IRS guidelines for employment tax records can be found in their official documentation here: IRS Employment Tax Recordkeeping.

Business Examples

• Beauty professionals: track booth renters and contractors.
• Food businesses: organize vendor receipts for perishables and supplies.
• Startups: review payments to freelancers and developers via our startup bookkeeping page.

Step 4: Confirm Payroll Accuracy on Your Year End Bookkeeping Checklist

Payroll errors create costly delays. Review:

• Employee details
• Sick pay
• PTO payouts
• Bonuses
• W-2 wages
• 1099 payments
• Local employment taxes

If payroll overwhelms your clients, consider recommending our tax preparation outsourcing services.

Step 5: Prepare 1099-NECs and 1099-MISCs in Your Year End Procedures for Bookkeepers

Your year end procedures for bookkeepers should always include:

• Identifying qualifying contractors
• Reviewing vendor totals over $600
• Confirming W-9 status
• Creating draft 1099s
• Verifying EINs

This is a major step in the end of financial year checklist for bookkeepers.

Step 6: Review Accounts Receivable and Accounts Payable for Your Bookkeeper Year End Checklist

A clean bookkeeper year end checklist means verifying:

• Unpaid invoices
• Credit memos
• Customer advances
• Outstanding vendor bills
• Deposits in transit

This ensures accurate profit and loss totals before year-end adjustments.

Step 7: Review Mileage, Travel, and Expense Records

Many deductions require documentation. To prepare travel expenses (meals, mileage, transportation), use the IRS guide here: IRS Publication 463.

This step matters for:

• Consultants
• Real estate professionals
• Therapists
• Contractors
• Sales professionals

A strong year end bookkeeping process prevents missed deductions for your clients.

Step 8: Update Depreciation and Fixed Asset Schedules

This part of the year end checklist for bookkeepers often requires collaboration with a tax professional.

Review:

• New equipment
• Disposed assets
• Vehicle changes
• Repairs vs. improvements
• Depreciation schedules

If your client needs deeper financial strategy, our fractional CFO services can help.

Step 9: Run and Review Year-End Financial Statements

Your bookkeeping end of year checklist should always include reviewing:

• Balance sheet
• Income statement
• Cash flow
• Budget vs. actual
• Inventory adjustments
• Owner distributions
• Retained earnings

These reports help bookkeepers educate clients before they meet their CPA.

For guidance on budgeting, visit our budget bookkeeping resource.

Step 10: Prepare Client Budgets for the New Year

Great bookkeepers look ahead. Use year-end insights to help clients create next-year goals.

If you work with California-based clients (or want to attract more), our page on bookkeeping in Riverside increases relevance while reinforcing that our services are fully remote across the U.S.

Strong Year-End Support for Bookkeepers

A cleaner system helps you work faster, serve more clients, and reduce stress. This year end bookkeeping checklist gives you a strong foundation for the weeks ahead.

If you want help with cleanup, tax prep, or CFO-level planning, Simplicity Financial is here to support you year-round.

Need help managing your year-end workload? Contact us today for remote support tailored to your bookkeeping firm.

Frequently Asked Questions About the Year End Bookkeeping Checklist

What should be included in an end of year bookkeeping checklist?

An end of year bookkeeping checklist includes reconciliations, payroll verification, 1099 preparation, expense reviews, financial reports, and asset updates.

What is the best way to follow best practices for organizing bookkeeping for year-end taxes?

You can implement the best practices for organizing bookkeeping for year-end taxes by cleaning categories early, organizing receipts, confirming contractor data, and preparing estimates.

What are the required year end procedures for bookkeepers?

Common year end procedures for bookkeepers include verifying payroll, updating depreciation, preparing reports, and finalizing 1099s.

Where can I get help with my bookkeeping end of year checklist?

You can reach out to Simplicity Financial for support with cleanup, reporting, fractional services, and tax preparation.

Disclaimer

This article is for educational purposes only. It is not tax, legal, or financial advice. Always consult a qualified accountant or tax professional for guidance specific to your situation or region.