The worst week to find out your books are off is the week your CPA asks for them. November and December are the easy months to fix things. The statements are fresh, and you still remember what that $1,400 charge in June was.
Here are six things to work through before December 31. Each one is a small job. The trouble is that they all pile up in January.
1. Make your bank and card accounts match
Reconcile every bank, credit card and loan account through your last 2026 statement. December statements arrive in early January, so plan a second quick pass then. Clear out anything sitting in “Uncategorized” or “Ask My Accountant.” And look for transfers between your own accounts and credit card payments that were booked as income or expenses. They are neither.
2. Know who owes you
Match every deposit to an invoice or a sale, and follow up on invoices more than 60 days old. If you don’t expect to collect one, flag it, but ask your CPA before you write it off. Check your payment platforms too (Stripe, PayPal, Square, Shopify). Payouts should match sales, and fees belong in expenses instead of being netted out of income. If a customer paid you for work you haven’t done yet, mark it for your CPA, because your books and your tax return can treat it differently.
3. Know what you owe
Enter the bills you received in 2026 but haven’t paid. This matters most if you report on an accrual basis, so ask your CPA which method you use. Move personal spending out of your expenses and record it as an owner draw. Attach receipts to larger purchases while you still remember what they were for, and cancel the subscriptions you stopped using.
4. Sort out contractors and payroll
Total what you paid each contractor in 2026. A 1099-NEC is required at $2,000 or more now, not the old $600 (here is what changed). Collect a W-9 from every contractor you don’t have one for, and check that payroll in your books matches your payroll provider’s year-end reports. W-2s and 1099-NECs are due February 1, 2027, because January 31 falls on a Sunday.
5. List equipment, count inventory, match loans
Write down every piece of equipment you bought in 2026 with the date, cost and invoice. If you’re planning a purchase before year end, talk to your CPA first, because the date it goes into use can change your 2026 tax bill. If you hold inventory, count it on December 31 and compare the count with your books. Match each loan balance to the lender’s December statement and make sure payments are split between principal and interest.
6. Hand it off cleanly
Run your year-end reports: Profit and Loss for January to December, the Balance Sheet as of December 31, and the receivables and payables aging reports. Once your CPA agrees the year is final, lock the books so old entries can’t be changed by accident. Save PDF copies with your receipts and bank statements, and book January time with your CPA now, before their calendar fills up.
Dates to put in your calendar
- December 31, 2026: the last day for 2026 payments to count in 2026 if you report on a cash basis.
- January 15, 2027: fourth-quarter 2026 estimated tax payment.
- February 1, 2027: W-2s and 1099-NECs due to workers, contractors and the IRS.
- March 15, 2027: partnership and S corporation returns, or file an extension.
- April 15, 2027: returns for individuals, sole proprietors, single-member LLCs and C corporations, or file an extension.
That is the short version. The full checklist has 23 items across these six sections, with a box to tick for each one. It is a two-page PDF and it is free: get the Year-End Books Checklist.
If you would rather hand year end to someone else, Books at Ease keeps the books for US small businesses, so your CPA gets a tax-ready file. You can book a free 30-minute call.
General information, not tax or legal advice. Rules and deadlines change, so confirm what applies to you with your CPA.
