Close Out Your Quickbooks Year Strong
As the year winds down, most business owners feel the pressure of tying up loose ends — and your books are no exception. A clean year-end close in QuickBooks not only sets you up for tax season, but also gives you confidence and clarity heading into a brand-new year.
At The Clever Ledger Bookkeeper LLC, I love helping business owners understand their numbers so they can make confident, informed decisions. If you’re preparing to close the year in QuickBooks, here’s a simple, practical guide to help you finish strong.
1. Reconcile All Accounts in Quickbooks (Yes, Every Account)
Before you can close anything, you need to make sure your numbers actually match reality.
That means reconciling all business accounts, including:
- Bank accounts
- Credit cards
- Loans
- Lines of credit
- PayPal, Stripe, Square
- Any other financial accounts tied to your business
If something doesn’t match, QuickBooks won’t magically fix it later — it only gets more confusing. This is the step that gives you your clean slate.
2. Categorize Every Transaction for Accurate Tax Reporting
Missing or uncategorized transactions are the #1 reason year-end books fall behind.
Go through your entire year and make sure everything is properly categorized:
- Income
- Cost of goods sold
- Operating expenses
- Owner draws or contributions
- Vendor payments
- Mileage or reimbursements
Helpful Tip: Take a look at your “Ask My Accountant” or “Uncategorized” categories — they’re small on the screen but powerful in impact. Clean those out before the year closes.
3. Send and Record All Business Invoices + Bills
To prevent gaps in your financial picture:
- Send any outstanding invoices
- Record payments received
- Enter all bills you owe
- Confirm vendor balances are correct
This gives you clear year-end accounts payable and accounts receivable totals — something your tax preparer will thank you for.
4. Review Payroll (The Most Overlooked Step)
If you run payroll, make sure everything is accurate:
- Employee information
- Contractor payments
- W-2 and 1099 details
- Payroll tax filings
- PTO balances
- Year-to-date wages
If you paid contractors $600+ for the year, you’ll need to issue 1099-NECs — QuickBooks can help, but only if everything is recorded correctly.
5. Check for Missing Receipts
QuickBooks’ receipt capture tool makes this easy, but only if you use it consistently.
Match all receipts to expenses — it keeps your books audit-ready and helps you maximize tax deductions.
If you can’t locate receipts, bank statements can often help you confirm the business purpose.
6. Review Your Quickbooks Financial Statements
Before closing the year, run these essential reports in Quickbooks:
- Profit & Loss (P&L)– Shows your income and expenses
- Balance Sheet– Displays your assets, liabilities, and equity
- Statement of Cash Flows– Tracks money in and out
- General Ledger– Detailed transaction history
Look for anything that seems “off,” especially negative balances, duplicate income, or expenses in strange categories.
This is usually the moment where business owners tell me, “Ohhh… that makes more sense now!”
7. Set a Closing Date to Lock Your Quickbooks Books
Once everything is complete and reviewed, set a closing date in QuickBooks.
This prevents accidental changes and keeps your numbers consistent for tax season.
It takes 10 seconds — and can save hours of headaches later.
How to Set a Closing Date on Quickbooks Online:
- Go to Settings (Gear Icon)
- Select Account and Settings
- Click Advanced
- Find Accounting Section
- Set your Closing Date and Save
Why Year-End Accounting Cleanup Matters
Closing the year in QuickBooks does more than prepare you for taxes — it gives you clarity.
You’ll walk into the new year knowing:
- What you earned
- What you spent
- Where your money went
- What goals you can set
- How your business is really performing
And if you find yourself overwhelmed during the process, you’re not alone. Many business owners come to The Clever Ledger Bookkeeper LLC because they’ve hit a wall in QuickBooks and don’t want to guess anymore.
Need Help Closing the Year? We Are Here to Help!
If you’d rather hand the year-end cleanup to a bookkeeper who loves details (so you don’t have to), The Clever Ledger Bookkeeper LLC offers:
- Quickbooks Year-end cleanup services
- Ongoing monthly bookkeeping
- QuickBooks Online setup & training
- Catch-up bookkeeping services
- 1099 tax preparation
A clean set of books is one of the best gifts you can give your business — and your future self.
Connect with us today for expert Quickbooks support!