As a small business owner, you’ve worn all the hats at times – marketing, operation, customer service, and yes, accounting. But when it comes to crunch time at the end of the year, the DIY approach can start to feel overwhelming. If you’ve been procrastinating or relying on a “figure-it-out-later” system, this guide is for you.
The Problem with Doing It All Yourself
Every year, I see business owners stuck in the same stressful cycle. They’ve spent months stuffing receipts in a drawer or tracking income on sticky notes, only to realize they’re missing crucial information just as tax deadlines loom.
Worse, many rush to find professional help at the last minute, only to discover that bookkeepers and accountants are already booked solid. Without accurate records, tax planning becomes guesswork, and missing forms like W9s turn January into a nightmare.
Breaking this cycle starts now! Use this checklist to get your DIY system under control, clean up your books, meet your tax obligations, and take the first step towards a more organized, less stressful financial process in 2025.
Your End-of-Year Accounting Checklist
- Organize Your Financial Data
- Start by pulling together everything you’ve been using to track your finances
- If it’s a shoe box of receipts: Organize them by date and type of expense. Consider transferring this information to a spreadsheet to make it easier to spot errors
- If you use a spreadsheet or app: Doublecheck for missing entries or duplicate transactions
- Look for discrepancies between your records and what you remember spending or earning
- Why It Matters: Without organized records, it’s impossible to prepare accurate financial reports or file taxes correctly
- Reconcile Bank Statements
- Even if you’re not using accounting software, you can still reconcile your bank accounts manually
- Even if you’re not using accounting software, you can still reconcile your bank accounts manually
- Pull your bank and credit card statements for the year
- Match each transaction on the statement with your own records, whether it’s a notebook, spreadsheet, or receipts
- Highlight any transactions you can’t account for and investigate them
- Why It Matters: Reconciliation ensures you haven’t missed any income or expenses—and helps you catch potential errors like double entries
- Follow Up on Unpaid Invoices
- If you bill clients, now’s the time to make sure all invoices are paid
- Review any unpaid invoices and send polite reminders to clients
- If you’re not using an invoicing system, make one of your goals for next year to find a simple tool to help track payments
- Why It Matters: Cash flow is king. Collecting outstanding invoices before year-end improves your financial picture heading into tax season
- Collect W9s from Contractors
- If you’ve hired contractors, you’ll need their W9 forms to issue 1099s in January
- Check your records to ensure you have W9s from every contractor paid $600 or more
- If you’re missing forms, request them now—it’s harder to get them during the busy tax season
- For 2025, create a policy: no payment without a W9 on file
- Why It Matters: Missing W9s can delay your tax filings and lead to penalties
- Review Expenses for Deductions
- Go through your expenses to find tax-deductible items
- Common deductions include supplies, travel, advertising, and professional fees
- If you haven’t been tracking expenses all year, spend time reviewing receipts and bank statements to identify missed deductions
- Why It Matters: Deductions reduce your taxable income, potentially saving you money
- Estimate Your Tax Liability
- This step can be tricky for DIYers, especially without a formal accounting system
- Review your total income and expenses for the year. If you don’t have these figures handy, gather them first
- Use an online tax calculator or IRS resources to estimate your tax bill
- If you’re unsure about your numbers, now’s the time to consult a professional
- Why It Matters: Estimating taxes now gives you time to set aside funds or make adjustments before filing
- Plan for Next Year
- Use what you’ve learned this year to set yourself up for success in 2025
- Set up a better system for tracking expenses and income, like a spreadsheet template or a simple app
- Establish policies like requiring W9s before contractor payments
- If your DIY system caused you stress, look into at least using accounting software, working with a professional or a hybrid approach
- Why It Matters: A plan helps you avoid the last-minute scramble and keeps your business finances on track
Break the Stress Cycle
If you’ve been doing it all yourself, you already know how stressful and time-consuming it can be. This checklist is your roadmap to getting through the year’s end, but if you’re feeling overwhelmed, it might be time to seek professional help.
A good bookkeeper can give you back time, improve accuracy, and reduce the headaches that come with DIY accounting. Starting the new year with a pro on your team could be the smartest move you make for your business in 2025! Set up your complimentary appointment – click the PINK button.
Use this handy link: IRS Tax Withholding Estimator
Here’s a shortened version of the checklist – NO EMAIL REQUIRED
