The December Clean-Up Checklist

December catches a lot of business owners off guard. Receipts everywhere, missing transactions, tax deadlines creeping in, and a general sense of “I should’ve started this earlier.”
You don’t need a full overhaul—you need a clean-up plan that gets your books tight before year-end without overwhelming you.

Here’s the straightforward, done-in-an-afternoon clean-up checklist that keeps your accountant happy and your January stress low.

1. Reconcile All Bank Accounts

This includes:

• business checking

• business savings

• credit cards

• PayPal

• Stripe / Square

• loan accounts

Reconciliation is the only way to confirm your books match reality. If your reconciliations aren’t up to date, nothing else will be accurate.

2. Categorize Every Transaction Through November

Don’t wait until January—you’ll forget what half of these charges were.

Focus on:

• software subscriptions

• meals & entertainment

• travel

• contractor payments

• advertising & marketing

• supplies

• mileage reimbursement

If something doesn’t clearly belong in the books, tag it for review and move on.

3. Clean Up Your Receipts and Documentation

Quick wins:

• forward all emailed receipts to your accounting software

• upload photos of paper receipts

• create a “2025 Receipts” folder

• match receipts to large purchases over $250

• check mileage logs for completeness

Missing receipts = missing deductions.

4. Review A/R (Unpaid Invoices)

Open invoices create fake profit and real cash-flow problems.

Check:

• who owes you

• how long it’s been outstanding

• who needs a reminder

• which invoices need adjusting

• which clients need a last-chance follow-up

Collecting now improves your December cash and your year-end numbers.

5. Review A/P (Unpaid Bills)

Look for:

• outstanding vendor bills

• upcoming auto-drafts

• annual renewals

• large December expenses

This helps prevent surprises and ensures your cash flow is realistic going into January.

6. Verify Contractor Info (Especially W-9s)

If you paid a contractor $600+ this year, you’ll need their W-9 to issue a 1099-NEC.

Now is the time to:

• request missing W-9s

• verify legal business names

• confirm mailing addresses

• confirm payment totals

Don’t wait until January—you’ll have delays and headaches.

7. Check for Duplicate Subscriptions or Tools You Don’t Use

December is the perfect time to eliminate:

• software you haven’t opened in months

• tools you bought “just in case”

• overlapping services

• unused features you’re paying for

This step alone can recover hundreds of dollars per year.

8. Review Inventory (If Applicable)

If you sell products:

• count inventory

• adjust shrinkage

• identify low-performing items

• plan year-end discounts if needed

Accurate inventory = accurate cost of goods sold.

9. Update Your Payroll Records

If you have employees or a payroll provider:

• check W-2 info

• verify addresses

• review fringe benefits

• confirm reimbursements

• check PTO balances

Clean payroll records prevent year-end corrections.

10. Make a List of Anything You Don’t Understand

Anything confusing, inconsistent, or suspicious—mark it, then ask your bookkeeper or accountant.

The best December clean-up systems are simple:

Identify → Mark → Ask → Fix

Final Thoughts

A December clean-up doesn’t need to be stressful. Knock out these essentials, keep what matters, and let the rest go. Clean books now mean a smoother January, an easier tax season, and a stronger start to 2026.

If you want help completing your December clean-up—or you want us to do it for you—book a Year-End Clean-Up Session and get your books ready for tax season.

The Money-Smart Business Blog provides educational content designed to help small business owners make informed decisions. This content is not tax, legal, or financial advice and should not be used as a substitute for personalized guidance. Always consult with a licensed professional before taking action based on this information.