Year-End Accounting Checklist for Solo CPAs: 12 Tasks to Avoid a Chaotic Tax Season

December is often the last real opportunity to get organised before tax season begins.

For solo CPAs, year-end work goes beyond closing the books. This is when gaps in documentation, missing client information, or unclear assumptions tend to show up later as delays once filings start. That’s why many practitioners look for a year end accounting checklist to guide the final weeks of the year.

This guide brings those tasks together in one place. It acts as a practical year-end CPA checklist, covering the steps that help keep records organised, decisions properly documented, and workflows steady as you move into January.

Whether you manage bookkeeping in-house or review work prepared elsewhere, having a clear structure for the year-end close makes it easier to avoid rework and start the busy season on solid footing.

Why a Year-End Checklist Matters (and What Most Firms Miss)

At this point in the year, you’re already doing the work. Accounts are being reviewed, documents are coming in, and you’re closing things out across multiple clients at once. The question isn’t whether you’re handling year-end. It’s whether anything important is being left behind as you move quickly from one client to the next.

A year end accounting checklist helps you slow the process down just enough to review everything, without relying on memory or scattered notes.

Issues that only show up when you review the full year

Some gaps are hard to spot during monthly work. They tend to become clearer when you look at the year as a whole. Missing documents, unreconciled balances, or timing differences often fall into this category.

Without a structured final review, these issues can carry into tax preparation and create delays later.

Documentation that exists but isn’t easy to trace

You’ve likely captured explanations and decisions throughout the year, but they don’t always live in one place. By year-end, that context can be spread across emails, messages, and working notes.

An end of year accounting checklist gives you a natural point to bring that information together while it’s still easy to locate and verify.

Different standards applied across client files

When year-end work is handled file by file, the level of review can vary more than intended. One client’s file is complete. Another relies on assumptions that feel clear now but won’t be obvious later.

A checklist helps you apply the same final review standard across every client before the books are closed.

Items that quietly get pushed into January

Some gaps are deferred with the intention of handling them later. In practice, those items often resurface during the busiest weeks of the season, when follow-up takes longer and time is tighter.

Using a checklist at year-end makes it easier to decide what needs to be resolved before close and what can realistically wait.

How to Use This Year-End Checklist Before Closing the Books

Use this checklist as a guide for your final review, not as something you try to complete in one sitting. It’s designed as a year end closing checklist you work through over the last days of the year, alongside active client files.

• Keep the checklist open as you work through active client files so each file is reviewed the same way, even when you’re switching between clients.

• Use it as a year-end close checklist, not a replacement for monthly work, since its purpose is to catch issues that only show up when you review the full year.

• Note anything that isn’t complete and decide early whether it needs to be resolved before close or clearly flagged for January, rather than leaving it ambiguous.

• Document assumptions, client explanations, and judgment calls as you review each item, while the context is still fresh and easy to recall.

• Focus on clarity rather than perfection so you don't carry unanswered questions into the busiest weeks of tax season.

• Keep the checklist visible throughout the close, whether printed or open alongside your work, to avoid relying on memory when things get busy.

The Year-End Accounting Checklist for Solo CPAs

This checklist is meant to guide your final pass through each client’s file before the year is closed. Work through it step by step, using it to confirm what’s complete, what needs follow-up, and what should be documented before moving into tax preparation.

Having a single place to store client documents, notes, and supporting files makes this process easier to manage when you’re reviewing multiple clients at once.

Step 1: Confirm the client file is complete for the year

Before reviewing numbers, make sure you’re working with a complete set of information. Gaps at this stage tend to ripple through the rest of the process.

As part of this review, confirm the following:

• All expected bank statements, credit card statements, and loan statements for the year have been received.

• Payroll reports, contractor summaries, and relevant year-end tax documents are on file where applicable.

• Any documents received late in the year have been properly incorporated into the records you’re reviewing.

• Anything still outstanding is noted so it can be resolved or clearly flagged before you move further into the review.

When documents are scattered across emails or folders, it’s easier to miss late submissions. Using a central document workspace like Bizora Vault helps ensure everything related to the client file is easy to locate during review.

At this stage, you’re confirming completeness before moving on.

Step 2: Make sure monthly bookkeeping and reconciliations are complete

Year-end review only works if the underlying monthly work is finished. If there are gaps in bookkeeping or unresolved reconciliations, they tend to surface later and slow everything else down.

Check the following before moving on:

• Monthly bookkeeping entries are complete through the end of the year.

• Bank, credit card, and loan accounts have been reconciled for each month.

• Reconciling items have been reviewed and either cleared or clearly noted.

• Any months that were skipped or partially completed earlier in the year have been brought up to date.

Keeping reconciliations and supporting statements stored consistently throughout the year reduces the time spent searching for backup during the close.

This step is about confirming that routine work is actually finished, not assuming it was handled along the way.

Step 3: Review accounts receivable and payable for accuracy

By year-end, receivable and payable balances should reflect what is actually outstanding, not simply what was last updated. This review is about checking whether those balances still hold up before they carry forward.

Scan for items that have remained open longer than expected. Old balances, partial payments, or credits that never cleared usually warrant a closer look. Confirm that payments recorded late in the year were applied to the correct invoices and periods.

On the payables side, review whether expenses were captured in the appropriate period and whether accruals made earlier in the year are still valid. If balances were adjusted or written off, make sure those actions were intentional and supported.

Anything that does not clearly tie out should be noted for follow-up or discussion with the client before moving on.

Step 4: Reconcile bank, credit card, and loan balances

At this point, you’re checking alignment rather than completeness. The focus is whether account balances at year-end reflect what actually happened, not simply whether a reconciliation was prepared.

Review bank and credit card reconciliations for the final month of the year. Pay attention to large reconciling items, unusual timing differences, or balances that were carried forward without clear resolution.

For loan accounts, confirm that principal and interest have been recorded correctly and that year-end balances agree with lender statements. If there were refinances, payoffs, or new loans during the year, make sure those changes are reflected accurately.

If a balance doesn’t reconcile cleanly, address it now or document why it remains open. Carrying unclear balances into the new year almost always creates more work once tax preparation begins.

Step 5: Review payroll records and contractor payments

Payroll and contractor activity usually runs in parallel throughout the year. At year-end, the priority is making sure those records align before anything moves into reporting or filing.

Begin with payroll summaries for the full year. Review totals in the context of headcount changes, pay adjustments, bonuses, or one-off payments. If figures don’t line up with what you expect, pause and trace them back to the source.

Contractor payments should be reviewed separately. Confirm that all contractors paid during the year are accounted for and that amounts are complete and correctly classified. Gaps here tend to surface late and create unnecessary follow-up.

Close out this step by checking payroll-related taxes, withholdings, and employer contributions against payroll reports. Any differences should be understood and resolved now, while the details are still easy to verify.

Once payroll and contractor records are consistent, the rest of the year-end close is usually easier to manage.

Step 6: Check for entity changes and client life events

Not all year-end issues show up in the numbers. Changes to the client’s situation during the year often affect how records should be reviewed and how filings are handled.

Before moving on, pause to confirm whether anything changed during the year, including:

• Changes in entity structure, ownership, or filing status

• New business activities, locations, or states of operation

• Asset purchases, disposals, or major financing events

• Client life events that affect reporting, such as marriage, divorce, or relocation

These details are easy to overlook because they’re outside routine bookkeeping. Catching them at year-end helps avoid surprises later and gives you the context you need before finalising the review.

Step 7: Review year-end journal entries and adjustments

Year-end entries often involve more judgment than routine transactions, which is why they need a focused review before anything is finalised.

Review journal entries posted late in the year, particularly those related to accruals, deferrals, depreciation, and corrections made outside the normal workflow. Pay attention to entries that have a material impact on income, expenses, or balance sheet accounts.

Confirm that each adjustment has a clear purpose and supporting context, whether from documentation or client explanation. If an entry was made to correct earlier issues, make sure the underlying issue is understood and not duplicated elsewhere in the file.

You want to be clear on why each adjustment exists before carrying it forward.

Step 8: Confirm prior-year carryovers and opening balances

Review prior-year closing balances and confirm they roll forward correctly into the current year. This includes loss carryforwards, credits, depreciation schedules, and any balances expected to continue.

If changes were made after the prior-year return was filed, make sure those adjustments are reflected consistently in the current records. Any differences between prior-year financials and filed returns should be understood and noted.

This step is about continuity. Once you’re confident the year started from the right place, the rest of the review is easier to trust.

Step 9: Prepare and review year-end financial reports

Once the underlying records are settled, generate the year-end financial statements and review them as a complete set. This is the point where you step back from individual accounts and look at the overall picture.

Scan for results that don’t align with what you know about the client’s year, such as unexpected swings, unusual margins, or balances that don’t fit prior activity. Changes from the prior year should be explainable without revisiting transactional detail.

Pay attention to how the statements tie together. Balance sheet movements should support income and expense activity, and nothing should stand out as disconnected or unclear.

If something doesn’t hold up at this level, trace it back now while the context is still fresh. With this review, you become confident in the outputs before they’re used for filings, planning, or client conversations.

Step 10: Check state-specific considerations and filing exposure

Before closing out the year, look beyond federal treatment. State-level issues often remain unnoticed until filings are already in progress.

Review whether the client’s activities during the year introduced new state exposure or changed existing obligations. This may relate to where income was generated, where work was performed, or where assets are located.

Be mindful of differences between federal and state treatment, particularly where conformity is limited or rules diverge. If a position depends on state-specific assumptions, those assumptions should be clear and supported.

Anything that could affect state filings, estimated payments, or compliance requirements should be identified now and noted for follow-up.

Step 11: Document assumptions, judgements, and client explanations

Before closing the file, make sure the reasoning behind key decisions is clearly recorded. This makes it easier to return to the work later without having to reconstruct context.

Document the following where applicable:

• Assumptions that affected how income, expenses, or balances were treated

• Judgement calls made where the treatment wasn’t straightforward

• Client explanations that influenced classification, timing, or reporting decisions

Storing these notes alongside supporting documents in a tool like Bizora Vault makes it easier to revisit decisions later without relying on memory or message history.

Focus on areas where questions are most likely to arise during tax preparation, review, or future discussions. Notes don’t need to be detailed, but they should be clear enough to stand on their own.

Step 12: Flag unresolved items and plan January follow-ups

Not everything will be resolved by year-end, and that’s expected. What matters is that anything still open is clearly identified and doesn’t get rediscovered under pressure later.

Review the file one last time and flag any unresolved items, open questions, or pending documents. Be explicit about what remains outstanding and why it wasn’t resolved before close.

For each item, decide what needs to happen next and when. Some issues may need client follow-up in early January, while others can wait until tax preparation begins. The key is that nothing is left undefined.

Having unresolved items, follow-ups, and related documents clearly grouped in one place reduces friction when work resumes in January.

This final step helps you start the new year with a clear view of what’s complete, what’s pending, and what still needs attention, without having to retrace your steps.

What Most Solo CPAs Forget to Document at Year-End

By the time year-end work wraps up, most of the focus has been on getting the numbers right. But gaps tend to show up later not because something was done incorrectly, but because the reasoning behind a decision was never written down.

When you’re working solo, those explanations usually live in your head, in email threads, or in short messages exchanged during the year. That works in the moment, but it becomes a problem once tax preparation starts or questions resurface months later.

Here are a few areas that often get handled correctly but left undocumented.

1. Assumptions made during classification or timing decisions

Not every transaction fits neatly into a category. At year-end, you often make judgement calls around expense classification, income timing, or accrual treatment based on context provided by the client.

Those decisions make sense when you’re in the file. But without a short note explaining why you treated something a certain way, you may have to reconstruct that logic later. Even a sentence or two can save time when questions come up during filing or review.

2. Client explanations that influenced how items were recorded

Clients regularly explain transactions verbally or through informal messages. That explanation may be enough to resolve the issue at the time, but if it isn’t captured anywhere, it disappears once you move on to the next task.

Documenting client explanations alongside the supporting documents helps preserve context. It also reduces back-and-forth later when the same transaction needs to be revisited or explained again.

3. Decisions made to leave items open or unresolved

Sometimes issues remain open at year-end by design. A document didn’t arrive, a figure couldn’t be confirmed, or a follow-up was intentionally deferred until January.

What’s often missing is a clear note explaining why the item was left unresolved and what the next step should be. Without that, unfinished work can feel ambiguous when you return to the file later.

4. State-specific assumptions or exposure considerations

State treatment often requires additional judgment, especially when rules diverge from federal guidance. If a position relies on a specific assumption or interpretation, it’s worth recording that reasoning while it’s still fresh.

This makes it easier to defend or revisit the position later without having to reanalyse the entire issue.

Use Bizora Vault to Keep Year-End Documentation in One Place

By the time you finish a year-end close, you’ve made dozens of small decisions across client files. Some were based on documents, others on client explanations, and many on professional judgement.

The challenge isn’t doing that work. It’s keeping everything tied together once tax preparation begins.

Bizora Vault is designed to support this exact stage of the process. Instead of relying on email threads, scattered folders, or memory, it gives you a single place to store year-end documents, notes, and supporting context alongside the client’s records.

During the year-end close, Vault can be used to:

• Store bank statements, payroll reports, and year-end tax documents in one central workspace

• Attach notes explaining assumptions, judgement calls, or client explanations directly to the relevant files

• Group unresolved items and follow-ups so nothing gets lost when work resumes in January

This makes it easier to return to a client file weeks later and immediately understand what was reviewed, what was decided, and what still needs attention.

For solo CPAs managing multiple clients at once, having documentation, context, and follow-ups organised in one place reduces rework and makes the transition from year-end close to tax preparation far more predictable.

Bringing Your Year-End Review to a Close

Year-end review doesn’t have to turn into a scramble once tax preparation begins. Using a structured year-end accounting checklist helps you work through each client file deliberately, reducing last-minute questions and avoidable rework.

What often makes the difference is how well documentation and context are preserved. When supporting documents, notes, and judgement calls are stored together, it’s easier to return to a file later and immediately understand what was reviewed and why decisions were made.

Bizora Vault supports this part of the process by giving you a single place to organise year-end documents, explanations, and follow-ups. Instead of relying on memory, inboxes, or scattered folders, you can move into January with client files that are complete, organised, and easier to pick up when work resumes.

The checklist helps you close the year. Clear documentation helps you start the next one without friction.

Frequently Asked Questions

What is a year-end accounting checklist?

A year-end accounting checklist is a structured review used to close out client records before tax preparation begins. It focuses on confirming completeness, accuracy, and documentation so files are ready to carry forward into the new year.

When should solo CPAs start using a year-end checklist?

Most solo CPAs begin using a year-end accounting checklist in the final weeks of December, once most transactions for the year are in. It’s meant to guide your final review alongside ongoing work, not to be completed all at once.

What documents should be collected during the year-end close?

Common year-end documents include bank and credit card statements, loan statements, payroll reports, contractor summaries, prior-year returns, and any year-end tax forms. These support the final review and help validate balances before filing begins.

Is a year-end accounting checklist different from a tax preparation checklist?

Yes. A year-end accounting checklist is used to close the books and validate records. A tax preparation checklist is used later to gather filing-specific information. Completing the year-end review first helps reduce delays during tax prep.

What are the most common mistakes during year-end review?

Common issues include incomplete reconciliations, missing documents, unreviewed old balances, and undocumented judgement calls. These often surface later when timelines are tighter and context has been lost.

How can solo CPAs keep year-end documentation organised?

The most effective approach is keeping documents, notes, and explanations stored together rather than scattered across emails and folders. Centralising year-end materials makes it easier to revisit decisions and continue work smoothly once tax season begins.