What Bookkeeping Should I Review Before the New Year?

The end of the year is one of the best times for a micro or one-person business to review its bookkeeping. Not to fix everything, not to make it perfect — but to regain clarity before January begins.

You don’t need accountant-style reports or complex reconciliations. What you need is a short, practical review that tells you where the business actually stands.

Most problems in January come from not knowing this.

What to review before the year ends

A simple year-end bookkeeping review focuses on five key areas.

First, review your income totals. Look at what came in over the last month and the last quarter. This helps you understand whether income has changed and whether invoices have been recorded correctly. If income feels “off”, this is where you’ll see it.

Second, review your expense totals. Scan your main expense categories and look for increases that may have crept in quietly. Small recurring costs often grow without being noticed, especially toward the end of the year.

Third, check outstanding invoices. Unpaid invoices at year-end often lead to cashflow stress in January. Knowing what is still outstanding allows you to follow up early rather than reacting later.

Fourth, review receipts and supporting records. Missing receipts are far easier to find now than months later. Make a note of anything you still need while the details are fresh.

Finally, if you’re GST-registered, review your GST position. You are not preparing BAS at this stage. You are simply checking whether GST collected and GST paid look reasonable for the period.

Why this review matters

Micro businesses that skip this step often start January feeling behind. Those that complete it start with confidence and control.

This review doesn’t take hours. If your records are mostly current, it can usually be done in 15 to 20 minutes. That small investment of time prevents surprises, rushed decisions, and unnecessary stress later.

The goal is visibility, not perfection. Knowing where you stand before the new year allows you to make better decisions from day one.

Learn more at www.ecashbooks.com — simple bookkeeping for micro and one-person businesses.