Year-end may still feel far away, but the final months of the year disappear quickly. Reviewing your financial records now can make year-end reporting and tax preparation smoother while giving you time to correct problems before December 31.

Here are the most important areas business owners should review before the year-end rush begins.

Reconcile Accounts and Review Old Transactions

Bring all bank and credit card reconciliations current, including savings accounts, credit cards, and lines of credit. Investigate checks or deposits that have remained outstanding for an unusual length of time instead of allowing them to carry forward indefinitely.

Review accounts receivable for overdue or disputed customer balances and follow up while there is still time to collect them. Also review unpaid vendor bills for duplicates, unapplied credits, or balances that may no longer be valid. Consult your accountant whether items should be written off.

Prepare for 1099 and Payroll Reporting

Do not wait until January to discover that vendor information is missing. Make sure a completed Form W-9 is on file for each applicable vendor and verify the vendor’s legal name, address, tax classification, and taxpayer identification number.

Beginning with payments made in 2026, the federal reporting threshold for many payments reported on Forms 1099-NEC and 1099-MISC increased from $600 to $2,000.

Employee information should also be reviewed before Forms W-2 are prepared. Confirm names, addresses, Social Security numbers, and withholding information. Record or report taxable benefits, bonuses, personal use of company vehicles, 2% shareholder insurance, and other compensation before the final payroll of the year.

Review Purchases, Loans and Owner Activity

Gather invoices and supporting documents for equipment, vehicles, furniture, computers, and other major purchases. Many businesses can elect to deduct the full cost of qualifying tangible business property costing $2,500 or less per item or invoice instead of depreciating it over several years.

Compare loan balances with lender statements so principal and interest are recorded correctly. Identify personal expenses paid from business accounts, business expenses paid personally, owner contributions and distributions, shareholder loans, and other equity transactions so your accountant can classify them properly.

Take a Close Look at the Balance Sheet

The income statement receives most of the attention, but the balance sheet often reveals problems first. Review bank accounts, receivables, inventory, fixed assets, loans, payroll liabilities, sales tax balances, and owner equity. Negative balances, old amounts that never change, or accounts that do not match supporting records may indicate an error that needs attention.

Talk With Your Accountant Before Year End

Tax planning is most useful while there is still time to act. Current and accurate financial records allow your accountant to estimate taxable income, identify potential issues, and discuss decisions involving purchases, retirement-plan contributions, estimated tax payments, and other year-end strategies.

A little cleanup now can prevent a much larger headache later. Starting early gives your business time to correct errors, collect missing information, improve cash flow, and make informed decisions before the year officially closes.

We Are Here to Help

If you need assistance preparing your business for year-end, contact your accountant or other trusted advisor here at BCS. We are happy to answer your questions and help make the year-end process as smooth as possible.