Start the Year Strong: A Bookkeeping Checklist for Small Business Owners
Charlotte Van Dyck
The start of a new year is one of the best opportunities a business owner has to reset, get organized, and build momentum. Instead of waiting until tax season to “deal with the books,” January is the perfect time to put a few smart financial habits in place that will make the rest of the year smoother, clearer, and far less stressful.
At Team One Accounting, we often tell clients the best way to avoid tax-season panic is to treat bookkeeping as a year-round strategy rather than a once-a-year scramble.
Here are actionable steps you can take now to set your business up for success:
1. Close Out Last Year Cleanly (Before You Move On)
Before you focus on the new year, make sure last year is actually finished. If 2025 isn’t properly closed out, your 2026 numbers won’t be reliable.
Start by:
- Reconciling your bank and credit card accounts through December.
- Reviewing uncategorized or “Ask My Accountant” transactions.
- Confirming your loans and credit card balances match lender statements.
Clean closeout equals clean reporting.
2. Organize Your Receipts and Business Documents
Strong bookkeeping starts with documentation. The more organized you are now, the less time you’ll spend looking for things later.
Do this:
- Create a digital folder system for the new year, by month or category.
- Store receipts immediately and do not let them pile up in the car or on your desk.
- Upload documents into QuickBooks Online or your preferred system weekly.
- Separate business and personal spending, this is huge.
Even if your books are outsourced, clean documentation saves both time and money.
3. Review Your Chart of Accounts
Over time, accounts can become messy with duplicates, vague categories, or too many “miscellaneous” buckets. That creates confusing reports and messy tax preparation.
Take 20 minutes to:
- Remove unused or duplicate categories.
- Rename unclear categories, for example, Supplies vs. COGS Supplies.
- Confirm income accounts match how you actually earn money, for example, Investments vs. eCommerce.
- Ensure payroll and contractor categories are separated properly.
Better categories equal better decision-making.
4. Set Your Bookkeeping Routine (and Put It on the Calendar)
The best bookkeeping system isn’t the fanciest one, but the one you keep up with.
We recommend setting:
- A weekly 20 to 30 minute block to review transactions.
- A monthly close date, for example, reconcile your accounts by the 10th of each month.
- Reminders for key deadlines such as sales tax, payroll tax, and estimated taxes.
Treat bookkeeping like brushing your teeth. Small consistency beats big cleanup.
5. Set a Budget That Matches Your Goals
A new year is great for setting goals, but goals without realistic steps are just wishes.
Action steps:
- Review last year’s revenue and expenses.
- Set monthly revenue targets, both conservative and stretch goals.
- Plan for large annual expenses such as insurance, renewals, and equipment.
- Build in savings for taxes and emergencies.
Your budget should feel realistic and aligned with what you want to accomplish.
6. Check Cash Flow Now (Before It Becomes a Problem)
Cash flow issues aren’t always about lack of profit. They’re often timing problems. January is a great time to make adjustments.
Do this now:
- List your recurring monthly bills.
- Identify your minimum cash needed each month.
- Check outstanding invoices and collect what’s due.
- Tighten payment terms if necessary or add late fees.
If your cash flow is strong, your entire year will feel easier.
7. Confirm Your Contractor and Payroll Setup Early
If you pay contractors or have employees, January is also a smart time to prevent compliance headaches later.
Action steps:
- Collect W-9s from any new contractors.
- Make sure contractors are categorized correctly for 1099 tracking.
- Check payroll tax settings are accurate in your payroll platform.
- Confirm reimbursements and employee benefits are being recorded correctly.
This prevents the dreaded “fix it at year-end” situation.
8. Finally, Decide What to Delegate This Year
Many business owners can do their bookkeeping, but they don’t have to. If keeping up with your books drains time and focus, outsourcing can pay for itself quickly.
Ask yourself:
- Am I behind on bookkeeping right now?
- Does tax season always feel chaotic?
- Do I want monthly reporting and financial clarity?
If the answer to these questions is yes, it may be time to bring in a professional. That’s where we come in.
Start 2026 Strong with Team One Accounting, where we help business owners
- Clean up and reconcile accounts.
- Organize bookkeeping systems.
- Provide monthly reporting and financial insights.
- Maintain accurate, tax-ready financials all year.
Contact Team One Accounting today to schedule a New Year bookkeeping check-in and get your finances running smoothly from day one.
Still have questions?
Team One Accounting is your local Orange County, CA & St John’s FL bookkeeping service, trusted by business owners who want clear, reliable, and friendly financial support. If you’re ready to take bookkeeping off your plate and feel confident in your numbers, contact us today for a free consultation.
Your Financial Goals Are Within Reach!
With expert support from Team One Accounting, you can save time, reduce stress, and focus on what you do best—growing your business. Schedule a consultation today and see how we can make a difference!
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