Year-End Bookkeeping Checklist for Edmonton Small Businesses
Year-end bookkeeping checklist for Edmonton small businesses. Reconcile accounts, organize receipts, review expenses, and prepare for tax season.
Andrew Kim
10/29/20264 min read
Year-End Bookkeeping Checklist for Edmonton Small Businesses
As the end of the year approaches, bookkeeping might not be at the top of your to-do list. Between serving customers, managing employees, and running your business, keeping your financial records organized can easily fall behind.
However, taking some time to review your books before year-end can help you avoid last-minute stress, make better business decisions, and prepare the information your accountant may need for tax season.
If you run a small business in Edmonton or the surrounding area, here is a practical checklist to help you get your bookkeeping in order before the year ends.
1. Reconcile Your Bank and Credit Card Accounts
Start by making sure your bookkeeping records match your bank and credit card statements.
Reconciliation involves comparing the transactions recorded in your accounting software with those shown on your statements. This helps identify missing transactions, duplicate entries, bank fees, and other discrepancies.
Before December 31, review your business bank accounts and credit cards to ensure they are up to date.
If you use QuickBooks Online, reconciling regularly can make this process much easier than trying to work through an entire year of transactions at once.
2. Review Outstanding Invoices
Unpaid customer invoices can affect your cash flow, even when your books show that you have earned the revenue.
Review your accounts receivable to identify overdue invoices and follow up with customers who still owe you money.
It is also worth checking whether any invoices need to be corrected or written off. If you have invoices that have remained unpaid for a long time, discuss the appropriate accounting and tax treatment with your accountant.
Knowing how much money customers owe you can help you plan for upcoming expenses and avoid cash flow surprises.
3. Check Your Unpaid Bills and Expenses
Your year-end review should also include money your business owes to suppliers and other service providers.
Review your accounts payable to confirm that bills have been entered correctly and that outstanding balances are accurate.
Look for missing bills, duplicate entries, and expenses that may have been recorded in the wrong account.
Remember that the date you pay an expense and the period in which it should be recorded are not always the same, particularly for businesses using accrual accounting. If you are unsure how an expense should be recorded, ask your accountant or bookkeeper.
4. Organize Your Receipts and Expense Records
Receipts and supporting documents help substantiate your business expenses and explain transactions recorded in your books.
Gather receipts for purchases made throughout the year and make sure they are properly stored. Digital copies can be particularly convenient because they are easier to organize and retrieve when needed.
Pay special attention to expenses that may be missing documentation, including:
Office supplies and equipment
Business travel and vehicle expenses
Meals and entertainment
Software subscriptions
Professional fees
Home office expenses, where applicable
Make sure expenses are legitimate business expenses and that any personal portion of a mixed-use expense is handled appropriately.
Keeping supporting records organized throughout the year can save considerable time when preparing your tax information.
5. Review Your QuickBooks Records
If you use QuickBooks Online, take some time to review your bookkeeping for errors or incomplete work.
Check for uncategorized transactions, duplicate entries, and transactions that have been assigned to the wrong expense or income account.
You should also review transfers between accounts to ensure they have not accidentally been recorded as income or expenses.
If your business collects GST, check that applicable sales and purchases have been recorded correctly and that your GST accounts are consistent with your records. Your filing obligations and deadlines will depend on your registration and reporting frequency.
Addressing these issues before year-end can make your financial reports more useful and reduce the amount of cleanup required later.
6. Review Your Financial Statements
Your bookkeeping is not just about preparing for taxes. It can also help you understand how your business is performing.
Two useful reports are your profit and loss statement and your balance sheet.
Your profit and loss statement summarizes revenue and expenses over a period, helping you assess profitability. Your balance sheet provides a snapshot of assets, liabilities, and equity at a particular date.
Consider reviewing your reports to answer questions such as:
How much revenue did the business generate this year?
Which expenses increased compared with the previous year?
Is the business consistently profitable?
Are customers taking longer to pay?
Does the business have enough cash to cover upcoming expenses?
These reports can help you identify areas where you may need to adjust pricing, manage costs, or improve cash flow.
7. Prepare Your Records for Your Accountant
If you work with an accountant for tax preparation, organized bookkeeping can make the process smoother.
Depending on your business structure and circumstances, your accountant may request financial statements, bank reconciliations, receipts, loan information, asset purchase records, and details about outstanding customer invoices or supplier bills.
Ask your accountant what they need and whether there are any transactions or year-end adjustments that require special attention.
Keep in mind that bookkeeping and tax preparation are different tasks. A bookkeeper can help organize and maintain your financial records, while your accountant can advise you on tax planning, deductions, and filing requirements.
Also, not every business has a December 31 fiscal year-end. If your business uses a different fiscal year, adjust this checklist to suit your reporting period.
8. Make a Plan for Next Year
Once your current records are in order, consider how you can make bookkeeping easier in the coming year.
Instead of waiting until year-end to organize everything, set aside time each month to review transactions, reconcile accounts, and follow up on outstanding invoices.
You could also consider using accounting software such as QuickBooks Online to keep your financial information organized in one place.
A consistent bookkeeping routine helps you stay informed about your business finances and makes it easier to spot problems before they become bigger issues.
Need Help With Your Year-End Bookkeeping?
Keeping your books organized while running a small business can be challenging. If you have fallen behind on your bookkeeping or want to spend less time managing financial records, getting professional support may help.
YEG Bookkeeping provides remote QuickBooks Online bookkeeping services for small businesses in Edmonton and surrounding communities.
Whether you need help keeping your monthly records up to date or getting your books organized, having accurate financial records can give you a clearer picture of your business finances throughout the year.
Contact YEG Bookkeeping to discuss your bookkeeping needs and find out how we can help you stay organized.
