Reconciliation & Closing
Year-End Bookkeeping Close: What to Do in January
Short answer
January year-end close: (1) reconcile every account through Dec 31, (2) issue 1099-NECs by Jan 31, (3) finalize mileage log, (4) count inventory if any, (5) record depreciation, (6) record owner's draws as equity, (7) export P&L + balance sheet for your CPA.
A clean year-end close cuts your CPA bill in half. A messy one costs you in penalties, missed deductions, and hourly cleanup billing.
The CPA-ready packet
- P&L for the full year
- Balance sheet as of Dec 31
- General ledger (or transaction detail by account)
- Reconciliation reports for every bank and card
- Mileage log totaling business miles
- 1099-NEC summary for all contractors paid $600+
- Asset purchases over $2,500 (date, amount, description)
- Loan statements showing year-end balance
Don't forget
1099-NEC deadline is January 31 — to the contractor AND to the IRS. Late filings cost $60–$310 per form.
Inventory on hand at Dec 31 affects your taxable income. Count it before the 31st if you carry parts.
Frequently asked questions
Can I do year-end myself?
Sole props with simple Schedule C returns often can. S-Corps, partnerships, anyone with employees or inventory should hand off to a CPA — the tax savings usually exceed the fee.
Bookkeeping, done for you.
Glo Invoice keeps your P&L, AR, and expenses in sync automatically — no spreadsheets, no surprises.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.