The Bookkeeper's Q4 Year-End Close Checklist — So Your CPA Gets Clean Books

Reconciliation tasks — complete through December 31

• All bank accounts reconciled through the last statement of the year — statement balance matches QBO/Xero register balance
• All credit card accounts reconciled through final December statement
• Outstanding checks older than 90 days reviewed — stale checks cleared or reissued
• Deposits in transit verified — all listed items have cleared or are correctly outstanding
• Any unexplained reconciling items documented with explanation
• Petty cash account reconciled and replenished if applicable
• Loan account balances reconciled to lender statements — ending balance correct

Revenue and AR tasks

• All revenue transactions recorded through December 31
• Accounts receivable aging report reviewed — balances over 90 days assessed for collectability
• Any disputed or uncollectible receivables noted for CPA review (bad debt write-off may be appropriate)
• Deferred revenue correctly calculated if applicable (subscriptions, retainers, gift cards)
• Cash-basis vs. accrual-basis revenue treatment confirmed with CPA if relevant
• All invoices for Q4 services issued and recorded

Expense and AP tasks

• All vendor bills received through December 31 entered and categorised
• Accounts payable aging reviewed — outstanding bills over 90 days verified
• Prepaid expenses correctly calculated (insurance, subscriptions paid in advance)
• Accrued expenses recorded if on accrual basis — wages earned but not yet paid, etc.
• Owner draws and distributions correctly classified (not as business expenses)
• Personal expenses separated from business expenses — alert CPA to any mixed-use items
• Subscription and recurring charges reviewed — any unused services to cancel

Payroll tasks — year-end

• YTD payroll figures reconciled to payroll provider reports — gross wages, taxes, and net pay match
• Employer payroll tax liability reconciled to payments made
• Quarterly 941 filings reconciled to annual figures — no discrepancies
• State unemployment tax (SUTA) payments reconciled
• Health insurance premium employer contributions correctly recorded
• Retirement contribution employer match recorded (if applicable)
• Bonus payments recorded with correct tax withholding
• W-2 data confirmed accurate with payroll provider — verify before they file in January

Fixed assets

• Fixed asset register reviewed — all assets purchased during the year added
• Disposals and sales of assets recorded and documented
• Depreciation schedule updated through December 31
• Section 179 elections and bonus depreciation items identified and flagged for CPA
• Vehicle mileage logs requested from client if claiming vehicle expense
• Home office documentation requested if applicable

Client document requests — send in October

• Mileage logs for any vehicles used for business (January 1 – December 31)
• Home office measurements and total square footage if claiming home office deduction
• Receipts for any cash expenses not run through business accounts
• Documentation for any asset purchases over $2,500 (invoices, purchase agreements)
• Loan statements from any new loans taken out during the year
• Documentation of any personal funds invested in the business during the year
• Information on any new contractors or vendors paid over $600 — W-9 forms required
• Information on any employees terminated during the year — final pay confirmed
• Any insurance settlements received or litigation proceeds