Year-End Checklist for Small Business Owners: What To Do Before the Calendar Turns

As the year winds down, December becomes one of the most important months for business owners. Between holiday rushes, family time, and preparing for the new year, it’s easy to overlook financial housekeeping — but these last few weeks can make a big impact on how smoothly you enter 2026.

Here’s a simple but powerful Year-End Checklist to help you wrap up 2025 with clarity and confidence.

1. Reconcile Your Books

Make sure all accounts are up to date. This includes:

• Bank accounts

• Credit cards

• PayPal, Stripe, or platforms you use

• Any expense tracking apps

Clean records today mean fewer headaches when tax time hits.

2. Review Your Expenses

Now is the time to evaluate whether any remaining 2025 purchases or payments should be made before December 31. This may include:

• Equipment upgrades

• Software renewals

• Marketing investments

• Business training or certification programs

These can potentially reduce your taxable income for the year.

3. Run Final Payroll & Contractor Payments

Confirm all W-2 and 1099 information is correct. December is your chance to fix errors before forms are filed in January.

4. Update Your Inventory (If Applicable)

If you run an ecommerce shop or hold physical goods, take a final count. This keeps your cost-of-goods-sold (COGS) accurate heading into next year.

5. Pull a Q4 Financial Snapshot

A year-end review can help you spot trends and guide decisions for 2026:

• What were your highest-earning months?

• Which expenses grew?

• Did you meet your revenue goals?

Use this information to plan and set new goals.

6. Schedule Your Tax Prep Appointment

Filing season hits quickly. Booking early helps you avoid stress and ensures your financials are ready to go.

ARC Business Advisors can assist with bookkeeping, tax prep, and strategic planning so you can close out 2025 smoothly.