As the end of the year approaches, businesses are busy reviewing goals, planning, and ideally, wrapping up their accounting. Year-end is more than just closing your books; it’s a chance to organize your records, catch errors, and get your numbers ready for reporting and tax filing.
At Infinity & Beyond Business Inc., we help businesses finish the year strong by staying proactive and organized. Use this practical year-end accounting checklist to make sure nothing slips through the cracks.
- Reconcile All Bank and Credit Card Accounts
Before anything else, ensure that your bank and credit card statements match the balances in your books.
What to do:- Match each transaction with your records
- Investigate and resolve any discrepancies
- Ensure all deposits and withdrawals are accounted for
Why it matters: Reconciled accounts are the foundation for accurate reporting.
- Review Accounts Receivable and Payable
Take time to assess who owes you—and whom you owe.
Accounts Receivable:- Follow up on outstanding invoices
- Write off bad debts if necessary
- Ensure payments are applied correctly
Accounts Payable:
- Review unpaid bills
- Confirm due dates to avoid late fees
- Make payments before year-end, if needed for deductions
Why it matters: Knowing your true cash position helps you close cleanly and plan ahead.
- Update and Categorize All Transactions
Throughout the year, transactions may get miscategorized or missed entirely. Now’s the time to fix it.
Checklist:- Review expense and income categories
- Correct any misclassified items
- Record all missing transactions (receipts, invoices, mileage logs, etc.)
Why it matters: Clean records prevent reporting errors and allow for accurate analysis.
- Confirm Payroll Records and Remittances
If you have employees or contractors, payroll needs a careful review.
What to verify:- Employee wages, bonuses, and benefits
- Accurate source deductions and remittances to the CRA
- T4 and T4A slips are ready or planned
Why it matters: Payroll errors can lead to penalties and CRA red flags.
- Review Asset Purchases and Depreciation
If you’ve bought or disposed of equipment, vehicles, or software this year, record it properly.
What to include:- List of fixed assets with purchase/sale dates
- Add depreciation entries if applicable
- Verify that amortization schedules are up to date
Why it matters: These adjustments impact your year-end totals and tax obligations.
- Conduct a Physical Inventory Count (If Applicable)
For product-based businesses, inventory accuracy is essential.
Steps:- Count the actual inventory
- Compare with inventory records
- Investigate shrinkage or variances
- Adjust books as needed
Why it matters: Accurate inventory affects your cost of goods sold and profit margin calculations.
- Generate and Review Key Reports
Pull your core reports and review them with a clear eye.
Essential reports:- Profit & Loss Statement (Income Statement)
- Balance Sheet
- Trial Balance
- General Ledger
Why it matters: These reports help identify errors and give a snapshot of your business performance.
- Prepare for Tax Season
Even though filing may still be months away, getting ready now makes it easier.
Prep tips:- Collect and organize tax documents (T4s, receipts, etc.)
- Review allowable deductions and credits
- Estimate your tax owing or refund
- Book a consultation with your accountant
Why it matters: Early preparation can help minimize surprises and reduce stress.
- Back Up Your Records
Don’t forget to protect your data.
What to do:- Back up your accounting files to a secure cloud or drive
- Keep copies of receipts, contracts, and reports
- Ensure your data storage is CRA-compliant
Why it matters: In case of an audit or tech issue, you’ll be covered.
- Set Goals for the New Year
Once the books are clean, take time to plan.
Consider:- Setting revenue and expense targets
- Creating a new budget
- Scheduling quarterly reviews
- Identifying areas for growth or streamlining
Why it matters: A clear picture of the past helps shape a better future.
A proper year-end process is key to starting the new year strong. Whether you’re a solo entrepreneur or managing a growing business, this checklist will help you stay organized, compliant, and confident.
At Infinity & Beyond Business Inc., we support our clients with reliable bookkeeping, tax prep, and year-end wrap-ups. Need help closing your books or preparing for tax season? We’re here to make it easy.
Ready to simplify your year-end accounting?
Contact Infinity & Beyond Business Inc. today and let us help you finish the year on a high note—with everything in order and peace of mind in place.
