How to Close Out Your Books with Confidence (No Matter the Software)

December 26, 2025

As the year ends, one of the most important tasks for business owners is closing out the books. Whether you’re preparing for tax filing, planning for growth, or simply want peace of mind, year-end bookkeeping ensures your financial records are accurate, complete, and tax-ready.


The good news? The process is similar across platforms. Below is a practical year-end bookkeeping checklist, followed by software-specific tips for QuickBooks, Xero, ZipBooks, FreshBooks, and Wave.


Why Year-End Bookkeeping Matters

Closing your books isn’t just a formality, it helps you:

  • File accurate tax returns
  • Avoid IRS notices and penalties
  • Understand true profit and cash flow
  • Start the new year with clean, organized records


Messy books at year-end often lead to stress, missed deductions, and rushed tax prep—all things we want to avoid.


Universal Year-End Bookkeeping Tasks (For All Software)

No matter which platform you use, these steps apply across the board:

1. Reconcile All Accounts

  • Bank accounts
  • Credit cards
  • Loans and lines of credit


Reconciliation confirms your records match actual statements and helps catch errors or missing transactions.


2. Review and Categorize Transactions

  • Ensure income and expenses are properly categorized
  • Reclassify personal expenses if needed
  • Check for duplicate or uncategorized entries


3. Review Accounts Receivable & Payable

  • Follow up on unpaid invoices
  • Write off bad debt if applicable
  • Confirm bills and vendor balances are accurate


4. Verify Payroll & Contractor Payments

  • Confirm payroll totals match reports
  • Review 1099 contractor payments
  • Prepare for W-2s and 1099-NECs


5. Review Fixed Assets & Depreciation

  • Equipment, vehicles, computers, furniture
  • Confirm depreciation schedules are up to date


6. Run Key Financial Reports

  • Profit & Loss (Income Statement)
  • Balance Sheet
  • General Ledger


These reports are essential for tax prep and planning


Software-Specific Year-End Tasks


🟢 QuickBooks (Online & Desktop)

  • Reconcile all accounts through December 31
  • Review the Chart of Accounts for duplicates or unused accounts
  • Check Undeposited Funds for old or uncleared payments
  • Review Sales Tax Center (if applicable)
  • Lock the books after year-end to prevent changes


Tip: Use the “Reconcile” and “Audit Log” features for accuracy and accountability.


🟢 Xero

  • Reconcile all bank feeds
  • Review tracking categories for consistency
  • Check outstanding invoices and bills
  • Confirm tax rates and VAT/Sales Tax settings
  • Publish reports for year-end


Tip: Make sure bank rules didn’t miscategorize transactions throughout the year.


🟢 ZipBooks

  • Review income and expense categories carefully
  • Confirm all bank connections are current
  • Review invoices and customer balances
  • Export reports for your tax professional


Tip: ZipBooks is simple, but manual review is key since automation is more limited.


🟢 FreshBooks

  • Reconcile bank and credit card accounts
  • Review time tracking and expense entries
  • Ensure all invoices are marked correctly (paid/unpaid)
  • Export Profit & Loss and Expense Reports


Tip: FreshBooks is great for service providers—just be sure expenses are fully captured.


🟢 Wave

  • Reconcile all connected bank accounts
  • Review uncategorized transactions
  • Confirm payroll and contractor payments
  • Download year-end reports for backup


Tip: Since Wave is free, it’s especially important to manually review for errors or gaps.


Don’t Forget These Final Steps

  • Back up your data (PDFs or exports)
  • Save receipts and supporting documents
  • Communicate with your tax professional early
  • Set up your books for the new year (new budget, goals, tracking)


Need Help Closing Out Your Books?

If year-end bookkeeping feels overwhelming—or you’re not confident your numbers are right—you don’t have to do it alone.


At C’More Bookkeeping & Tax, we help small businesses and nonprofits take their books from “stressed and messy” to “calm and clean.” Whether you need a year-end review, cleanup, or tax-ready reports, support is available.


📩 Let’s get your books closed the right way—so you can start the new year with clarity and confidence.

 

Staying Financially Strong in an Unpredictable Economy — End-of-Year Guide for Small Business Owners

December 11, 2025
As we close out the year, one thing is certain: the economy may shift, but your business can stay steady and resilient with the right financial habits. Whether this year brought growth, challenges, or a little of both, now is the perfect time to tighten up your systems and step confidently into the new year. Here’s how to keep your business strong—no matter what the economy is doing: 1. Keep a Close Eye on Cash Flow Cash flow is the heartbeat of your business. Understanding what’s coming in and going out helps you stay ready for anything. End-of-year reminder: Review your cash flow for the past 12 months. Identify slow periods, spikes, and areas where expenses increased without you noticing. Tips to strengthen cash flow: Eliminate unnecessary expenses Ask vendors about better payment terms Encourage early customer payments Plan ahead for seasonal slowdowns A healthy cash flow allows you to cover expenses, invest in growth, and avoid relying on credit. 2. Spend Smarter The end of the year is the perfect time to audit your expenses. Look for items you can trim or renegotiate so your money is working efficiently for you. Consider: Canceling unused subscriptions Reducing costs for services you no longer need Automating repetitive tasks to save time and money Negotiating better rates where possible Small adjustments can significantly increase your profit margin without affecting the quality of your services. 3. Stay on Top of Your Numbers Clean, accurate books allow you to make confident decisions and head into tax season without stress. Before the year ends, make sure: Your records are fully up to date Accounts are reconciled Receipts are organized You’re prepared for upcoming tax deadlines You have professional support if needed Accurate financials help you set prices correctly, make informed budgeting decisions, stay compliant, qualify for loans, and plan for growth. 4. Get Creative with Revenue Diversifying your revenue streams helps protect your business during economic shifts. Ways to expand earning potential: Add new services or upgrade existing ones Offer flexible payment plans Create seasonal or year-end promotions Implement subscription or retainer-style services Re-engage past clients with incentives Innovation keeps your business competitive and profitable year-round. Final Thoughts Economic ups and downs are part of the entrepreneurial journey, but your financial foundation doesn’t have to rise and fall with the economy. By managing your cash flow wisely, cutting unnecessary costs, maintaining clean books, and diversifying revenue, you set your business up for stability and long-term success. If you want your numbers to work for you—not against you—I’d love to support you. Need help with bookkeeping, financial clarity, or tax prep? Let’s chat! C’More Bookkeeping & Tax – Helping You Stress Less & Keep Better Books.

Are You Thinking About Changing Bookkeeping Software? Here’s What to Consider First

December 5, 2025
Thinking of switching bookkeeping software? Discover key factors to consider before making the change, ensuring a smooth transition and better financial management.

Notary Services Made Simple: Why You Can Feel Confident Choosing Remote Notarization

By C’More Bookkeeping & Tax — serving with integrity, clarity, and care • December 5, 2025
When it comes to getting documents notarized, most people think of driving across town, sitting in an office, and coordinating schedules. But today, you have another convenient option: Remote Online Notarization (RON) — a secure, legally recognized way to notarize documents using video technology. Whether you’re finalizing estate planning documents, signing real estate forms, verifying identity, handling insurance paperwork, or simply taking care of a general notarization, remote notarization makes the process smoother and more accessible. But here’s the real question clients often ask: “Is it safe? Can I trust this process?” Absolutely — and here’s why. 1. Remote Notarization Is Secure and Legally Protected Remote notarization is backed by state law, secure platforms, and strict identity-verification standards. Before your notary session begins, the system verifies your identity using: - Credential analysis - Knowledge-based authentication - Encrypted video sessions Every notarization is recorded and auditable for your protection. 2. It’s Convenient — Especially When Life Is Busy Remote notarization is perfect for people with busy schedules. No driving or rearranging your day is required — simply log in, verify your identity, and meet your notary from your device. 3. It Provides the Same Legal Protection as In-Person Notarization A remote notarization carries the exact same legal weight as an in-person notarization. 4. It Reduces Errors and Increases Accuracy Remote platforms guide the process step-by-step, ensuring ID clarity, signature accuracy, and complete documentation. 5. You Work With a Trusted Notary — Not a Random Platform With C’More Bookkeeping & Tax Notary Services, you receive clear instructions, professional guidance, and trustworthy support.Remote notarization is safe, secure, legally recognized, and convenient. Whether you need general documents, estate planning forms, insurance paperwork, real estate documents, or affidavits, you can feel confident using remote notarization. Contact: Email: cynthia@cmoretax.com Serving Dallas and surrounding areas — with remote notarization available anywhere in Texas.

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