How to Start the Year Right: Bookkeeping Tasks to Tackle in January

The beginning of a new year is the perfect time to reset your financial systems, close out last year cleanly, and set yourself up for a successful year ahead. Taking the right bookkeeping steps in January will save you headaches later and give you a clear picture of your business’s financial health.

Wrap Up Last Year’s Books

• Review and Reconcile Your Accounts
  Make sure all bank and credit card accounts are fully reconciled for the previous year. This ensures your financial statements are accurate and ready for tax filing.

• Finalize Your Year-End Reports
  Confirm that W2s, 1099s, and payroll tax filings are complete and accurate. These documents form the foundation of your tax return and employee records.

Set Up Clean Books for the New Year

• Start Fresh with a New Accounting Period
  Close your books for the previous year in your accounting software to separate last year’s transactions from the new year’s.

• Update Your Chart of Accounts
  Review your accounts to make sure they still align with your business activities. Add or remove categories as needed to improve clarity.

Plan for 1099s and Tax Reporting

• Collect Updated W-9s from Contractors
  Begin gathering W-9 forms from any new contractors you’ll work with this year to ensure compliance.

• Set Reminders for Quarterly Taxes
  If you pay estimated taxes quarterly, create a calendar reminder so you never miss a deadline.

Establish Bookkeeping Habits Early

• Schedule Regular Bookkeeping Sessions
  Consistency is key. Plan weekly or monthly bookkeeping sessions to keep your records current.

• Use Cloud-Based Software
  If you haven’t already, consider switching to cloud accounting software for real-time access and easier collaboration with your bookkeeper or CPA.

Free Resource: DIY Bookkeeping Health Checklist

To help you navigate your bookkeeping, download our DIY Bookkeeping Health Checklist. Use this simple checklist to assess, improve, and take control of your finances—starting today.

Starting the year with organized books sets a strong foundation for making informed business decisions, maximizing deductions, and growing your business sustainably.