How to Prepare Your Books for Year-End Financial Reporting

With 2026 around the corner, now’s the time to start preparing your business’s year-end reporting. Doing it earlier helps you stay on top of each tax season and plan your fiscal year strategically. Here are the three main steps you need to take to avoid any last-minute issues from happening: 

Organize Your Financial Records

Have all relevant documents like company receipts, payroll records, and bank statements in one place. This way, if the IRS asks for additional plans, you’ll have everything ready when they do. Once you’ve collected your documents, take some time to reconcile your accounts and make sure every transaction and deposit matches your records. 

Review and Adjust Accounts

Before closing everything up for the year, review your business accounts and verify that everything aligns with your financial overview. This includes addressing any unpaid transactions, recording all expenses and income, and documenting inventory changes to stay compliant. These crucial updates protect you from a surprise tax audit and give you a clear picture of your business’s financial health.

Prepare Statements

Compile all of the information you have into a report that highlights your company’s overall performance for the year. A simple balance sheet, income statement, and cash flow statement is the minimum you need to get solid insight into your business’s profitability. Investors and stakeholders will also trust your business much more when they know it’s running smoothly. 

At JTS Associates’ Accounting, we help small businesses organize their year-end reporting and ensure you stay compliant. If you have any questions about our services, contact us at 516-877-5900 to schedule a consultation today.