The 12-Point Year-End QuickBooks Cleanup Checklist
☑
All bank accounts reconciled through December 31 — every account balance in QBO matches the December 31 bank statement to the cent. No exceptions.
☑
All credit card accounts reconciled through December 31 — including business credit cards, PayPal balance, and Stripe payouts.
☑
Zero balance in Uncategorized Expenses and Uncategorized Income — every transaction categorized to its correct tax line.
☑
Zero balance in Ask My Accountant — all pending items resolved before year-end close.
☑
1099-NEC contractor list finalized — every contractor paid $600+ has name, address, EIN, and total paid for the year. 1099-NEC filing deadline: January 31.
☑
Fixed asset schedule updated — any equipment, vehicles, or improvements purchased during the year added to the schedule with cost, in-service date, and depreciation method. Section 179 or bonus depreciation elections flagged for your CPA.
☑
Owner draws and distributions documented — total draws for the year listed with dates. For S-corps: salary vs distribution split documented separately.
☑
Loans reconciled — business loans match the year-end bank statements. Interest paid separated from principal.
☑
Payroll reconciled to W-2 totals — if you have employees or owner payroll, the total wages in QBO match the W-2 totals from your payroll provider.
☑
Accrual adjustments posted (if accrual basis) — prepaid expenses amortized through December 31, accrued expenses posted for invoices received but not yet paid.
☑
Inventory counted and adjusted (if applicable) — physical count as of December 31 compared to QBO quantity on hand. COGS adjusted for discrepancy.
☑
Final trial balance and supporting schedules packaged for CPA — reconciliation schedules, fixed asset schedule, prepaid schedule, 1099 list, owner draw summary, and any transaction notes.
Key Year-End Deadlines
| Deadline | Task |
|---|---|
| December 31 | All reconciliations closed through year-end. No back-dating after this date. |
| January 15 | Confirm 1099 contractor list — collect any missing W-9s before this date |
| January 31 | 1099-NEC forms filed and sent to contractors. W-2s sent to employees. |
| January 31 | CPA workpaper package delivered by Sharma Jyoti and Co |
| March 15 | S-corp and partnership returns due (Form 1120-S, Form 1065) |
| April 15 | Individual returns due (Schedule C, Form 1040) |
What Sharma Jyoti and Co Delivers as a CPA Workpaper Package
By January 31, every Sharma Jyoti and Co client receives:
- Final reconciled trial balance from QuickBooks
- Bank reconciliation schedule for each account (opening balance, all transactions, closing balance)
- Fixed asset schedule — additions, disposals, depreciation, net book value
- 1099-NEC contractor list with all required fields for e-filing
- Owner draw / salary / distribution summary
- Prepaid expense and accrued liability schedules (if applicable)
- Transaction notes for any unusual items requiring CPA judgment
Your CPA reviews this package and can proceed directly to preparing your return — no reconstruction, no additional questions about uncategorized items, no extra hours billed to you.
Frequently Asked Questions
Full reconciliation through December 31, zero uncategorized items, 1099-NEC contractor list, fixed asset schedule, owner draws documented, payroll reconciled, and a complete workpaper package. Sharma Jyoti and Co delivers all of this by January 31 — included in the standard monthly fee.
By December 31 — the December close is the year-end. If your books are current through November, the December close takes 3–5 business days. If catching up multiple months, start by mid-December. Sharma Jyoti and Co delivers the workpaper package by January 31.
A package of supporting documents your CPA uses to prepare your return: trial balance, bank reconciliation schedules, fixed asset schedule, 1099 contractor list, owner draw summary, and transaction notes. Clean workpapers reduce your CPA's preparation time — and their bill — by 2–5 hours. Sharma Jyoti and Co includes this at every pricing tier.