As the calendar turns toward year-end, small businesses face a critical financial moment. Beyond reconciling numbers, year-end bookkeeping is an opportunity to gain clarity, ensure compliance, and position your business for strategic growth in 2026. At DWG CPA, we view this process not merely as a technical task—but as a decisive step in responsible financial leadership.
This comprehensive checklist is designed to help business owners, founders, and nonprofit leaders finalize their books and prepare for a strong financial start to the new year.
Reconciliation is the foundation of clean books. It ensures your internal records match your actual bank and credit card statements. Before December closes:
Errors caught now will save time and reduce audit risks later. Inaccurate reconciliations are one of the leading causes of year-end reporting delays and tax misstatements.
Accurate expense classification is essential for financial analysis and tax planning. Before filing season:
Proper expense classification also protects you from IRS scrutiny and helps maximize deductions. If you’re unclear about the difference between bookkeeping and broader accounting responsibilities, our blog Bookkeeping vs. Accounting: What’s the Difference and Which Do You Need? offers helpful guidance.
Businesses that have paid $600 or more to a contractor, consultant, or vendor in 2025 must issue a 1099-NEC by January 31, 2026. To avoid penalties:
Missing W-9s in January can cause reporting delays and filing errors. You can read more in our guide: 1099 Filing for 2025: What Every Small Business Should Know.
Payroll accuracy is crucial for both compliance and employee trust. Before year-end:
Working with a CPA or payroll provider helps ensure smooth W-2 and 940/941 filing in January. The IRS has strict deadlines and late penalties for incorrect or missing payroll documents.
Outstanding invoices can strain cash flow and distort your year-end financial picture. Now is the time to:
A strong A/R position improves your working capital and financial ratios heading into Q1.
This is not just about closing the books—it’s about understanding your performance. Carefully review:
Ask your CPA or financial advisor to help you identify areas for improvement and flag trends that may shape your 2026 strategy.
Even if you’ve collected W-9s, further steps are needed to issue accurate 1099 forms by the January 31 deadline:
Late or inaccurate 1099 filings can result in penalties from the IRS. IRS Publication 1220 outlines the latest e-filing guidance and formats.
If your accountant is only filing your taxes in March or April, you’re missing critical tax-saving opportunities now. Before year-end, your CPA should help you:
Our clients who plan now enjoy smoother filing seasons and fewer financial surprises.
For a deeper look at how an outsourced CPA team can guide you during this phase, explore: First 90 Days with an Outsourced Bookkeeping Team
Year-end bookkeeping is not just about compliance—it’s about control. A clean, reconciled set of books helps you avoid tax-season stress, make informed decisions, and set accurate financial goals for the year ahead.
At DWG CPA, we go beyond the numbers. From cleanup bookkeeping to 1099 filings and strategic tax planning, our team supports growing businesses and nonprofit leaders across Texas and beyond.
If you’re behind, we can help you catch up. If you’re on track, we’ll help you finish strong.
Let’s Close 2025 with Confidence
Book your year-end financial review today at dwg.cpa and start 2026 on a firm financial foundation.
If you’re building something important and need a trusted financial partner to grow with you – we’d love to hear from you.
DWG CPA PLLC is a Texas-based accounting firm serving businesses and nonprofits since 2005. We specialize in virtual accounting, tax strategies, and personalized financial guidance across industries like healthcare, construction, real estate, and nonprofits.
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