Year-End Bookkeeping Checklist

Check the client portal (SmartVault, Liscio, TaxDome) for December bank and credit-card statements on every operating account. Chase a missing statement immediately — waiting for it on Day 5 stalls the entire close.

The last December pay date plus the related federal 941 deposit must be in QBO/Xero before the close starts. Pull the Gusto, ADP, or Paychex year-end report and confirm wages, taxes, and employer match all hit the GL.

Pull the Bill.com or Ramp inbox, Hubdoc/Dext queue, and any paper-bill tray. December-dated invoices arriving in early January are common — they accrue back to the prior year if material.

Run the QBO/Xero reconciliation for each checking and savings account against the December statement. Book balance must tie to bank balance after outstanding checks and deposits in transit.

Anything uncleared more than 90 days is suspect. Void stale checks per state escheatment rules; investigate uncleared deposits with the client. Carrying a stale list into year-end masks real cash position.

Run the A/R aging summary as of 12/31 and tie the total to the GL 1200-series control account. Differences typically come from journal entries posted directly to A/R without a customer attached.

Anything 120+ days past due with no collection activity gets reviewed with the client for write-off. Direct write-off vs. allowance method depends on the client's reporting framework — most SMB cash-basis filers use direct write-off.

Pull December statements for every term loan, line of credit, and equipment lease. Verify principal balance, accrue any unbooked interest, and split the next-12-months portion to current liabilities if the client uses GAAP presentation.

Get the client's 12/31 physical count sheet, value at lower of cost or market, and post the shrinkage entry to COGS. For perpetual systems in QBO, run the Inventory Valuation Summary against the count.

Add current-year acquisitions, remove disposals, and tie ending balance to the GL. Note Section 179 vs. bonus depreciation candidates for the tax preparer — book depreciation usually differs from tax depreciation.

If the December pay period ends after 12/31, accrue wages and employer taxes for the days worked through year-end. Reverse the accrual on 1/1.

Insurance premiums, annual software subscriptions, and prepaid rent get amortized to the period consumed. Pull the prepaid schedule and post the December entry.

Pull every vendor paid more than $600 for services during the year. Filter out corporations (excluding attorneys and medical) and goods-only vendors. QBO's 1099 wizard misses payments made via credit card — those go on 1099-K from the processor, not your 1099-NEC.

Missing W-9 means missing TIN, which means backup withholding exposure. Send W-9 requests to any vendor without one on file before filing 1099-NEC.

Export the WTB to Excel or Fathom. Scan for unusual variances vs. prior year — anything with a 25%+ swing gets a note in the management commentary.

Comparative format — current year, prior year, and variance. Cash flow uses the indirect method for SMB clients. Branding and footnotes per the firm template.

Set the close date to 12/31 and apply a closing-date password under Account and Settings → Advanced. Prevents the client from posting prior-period entries that would untie the tax return.