Year-End Checklist for Small Business Owners

The last few weeks of the year are your best chance to clean up your books and make tax-saving moves. Use this checklist in November and December.

Get your books current

• Categorize all transactions through November, then December as soon as it closes
• Reconcile every bank, credit card, loan and payment platform account
• Record any personal funds used for business as owner contributions
• Record owner draws and distributions correctly

Review your profit and plan taxes

• Run a year-to-date profit and loss and compare it to last year
• Estimate your tax bill and compare it to estimated payments made so far
• Plan your January 15 fourth-quarter estimated payment
• If you're an S-corp owner, confirm your salary for the year is reasonable and that all payroll has been run

Consider tax-saving moves (when they make business sense)

• Buy needed equipment before year-end and place it in service to use Section 179 or bonus depreciation
• Prepay certain expenses if you're on the cash method and it's allowed
• Delay invoicing to January, or accelerate collections, depending on which year you want the income in (cash method)
• Fund retirement accounts: a Solo 401(k) generally must be established by year-end for some contributions; SEP-IRA contributions can be made up to the tax filing deadline including extensions
• Write off uncollectible receivables (accrual basis)

Don't spend money just to save tax. A dollar spent to save 30 cents is still 70 cents gone.

Contractors and 1099s

• Run a vendor payment report for the year
• Identify contractors paid at or above the threshold ($2,000 for 2026 payments)
• Request any missing W-9s now
• Prepare to file 1099-NEC forms by January 31

Payroll

• Verify employee names, addresses and Social Security numbers for W-2s
• Record any year-end bonuses
• Confirm Washington ESD and L&I quarterly reports are on track

Washington-specific items

• Confirm your excise tax returns are filed and match your books
• Review whether you're above or below the B&O filing threshold
• Check your business license renewal date and your LLC annual report month

Inventory and assets

• Count inventory on December 31 if you carry it
• Record your vehicle odometer reading on December 31
• List equipment bought during the year with dates and amounts

Organize for your tax preparer

• Year-end P&L and balance sheet
• Bank and loan statements
• 1099s and 1099-Ks you received
• Estimated tax payment records
• Mileage log, home office details and asset purchase invoices

Look ahead

• Set revenue and profit goals for next year
• Update your budget
• Decide whether an S-corp election, new hire or new pricing makes sense

The bottom line

A focused year-end review saves money and stress. Start in November so there's time to act, not just report.

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Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.

This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.