December 31st has a way of sneaking up on us every single year.
One minute you’re planning your Christmas Eve menu, and the next minute you’re staring at a pile of unreconciled bank statements wondering how it got to be the last week of the year.
The good news is that you still have time to close your books properly.
Here’s your realistic timeline for getting everything wrapped up before January arrives.
This Weekend (Dec 15th)
Reconcile your bank and credit card accounts through November.
Those mystery charges from October?
Figure them out now. Check that client deposits are in liability accounts, not showing as income.
Next Week (Dec 22nd)
Clean up anything sitting in “Miscellaneous” or “Uncategorized.”
Your tax preparer will thank you.
If you paid any contractors $600 or more this year, make sure you have their correct info for 1099 forms.
Chasing this down in January is miserable.
By Year End (Dec 31st)
Final reconciliation through December 28th.
Organize receipts for anything questionable.
Run your annual P&L and make sure nothing looks wildly wrong.
What Can Wait
Perfect books by December 31st? Not necessary.
Those last couple days of transactions? Handle them in early January.
That one missing receipt? You have time to find it.
Three weeks sounds like plenty of time until holiday parties and client deadlines eat it all up.
Start this weekend and in the future you will be grateful.