A Year-End Close Checklist That Doesn’t Lie

Year-end close is where small inconsistencies become big problems.

The goal is not “make the numbers look good.” The goal is make the numbers explainable.

The checklist

Here’s a pragmatic sequence:

1. Reconcile every bank and credit card account you use for the business.
2. Review uncategorized transactions and either categorize or flag for later.
3. Confirm income looks complete (match key revenue sources).
4. Check for duplicates (imports can do this).
5. Review reimbursements and owner draws so they’re not hiding inside expenses.
6. Export a snapshot: P&L, balance sheet, and a transaction export.

You don’t need to do everything in one session. But you do need to do it in an order that avoids rework.

Don’t “fix” by hiding

The easiest way to get into trouble is to smooth over uncertainty by burying transactions in a generic category.

If you don’t know what something is:

• flag it
• write a note
• attach what you can

Ambiguity is not a moral failure. It’s just a state. The system should represent it honestly.