Year-End Bookkeeping Checklist for Small Businesses

Why Year-End Bookkeeping Matters for Local Businesses

When the year winds down in Fredericton, most small business owners are focused on closing out projects, celebrating the holidays, or prepping for a new season. But behind the scenes, your financial records need just as much attention as your storefront. The end of the fiscal year is your chance to take stock of your business - not just what you earned, but how well you managed it. A clean year-end bookkeeping process helps you stay CRA-compliant, avoid tax-time stress, and start the new year with clarity and confidence.

At BaseTend, we help business owners across Fredericton, Oromocto, Hanwell, and New Maryland organize their books before December 31st hits - so they can focus on growth, not catching up.

Let’s break down the essential year-end bookkeeping checklist every small business in New Brunswick should follow.

Step 1: Reconcile All Bank Accounts and Credit Cards

Reconciliation is the foundation of year-end bookkeeping. It means comparing your records against your actual bank and credit card statements to ensure they match. This step catches missing transactions, duplicate entries, and small errors that could distort your financial reports.

For example, a Fredericton landscaping company might notice a double charge from a supplier or an unrecorded client payment once reconciliation begins. Those little discrepancies add up fast - especially when tax filings depend on accurate totals.

Pro Tip: Do this for all accounts - operating, savings, business credit cards, and even petty cash. When everything lines up perfectly, you can trust your financial statements heading into the new year.

Step 2: Review Accounts Receivable (What’s Owed to You)

Before year-end, review all outstanding invoices and follow up on overdue payments. This step improves cash flow and ensures your income statements reflect what’s actually been earned, not just what’s been billed. Many small business owners in Fredericton’s service sectors - like contractors, consultants, and wellness studios - lose money every year because they forget to chase late payments before the books close.

If a client still owes you from a summer project, now’s the time to send a reminder or finalize the payment.

BaseTend Tip: Consider offering early payment discounts in November or December to encourage faster collections before tax season.

Step 3: Review Accounts Payable (What You Owe Others)

Just as you want clients to pay you, your suppliers and vendors deserve timely payments too. Review your accounts payable ledger for unpaid bills, subscriptions, or invoices. This helps you claim all eligible business expenses for the year and maintain a solid reputation with vendors across Fredericton and Oromocto.

Double-check for:

• Outstanding utility bills or rent.
  
• Year-end purchases that haven’t been recorded yet.
  
• Auto-renewing subscriptions or software payments.

Recording and paying these ensures your expense totals are accurate — which can reduce your taxable income and simplify your accountant’s job later.

Step 4: Verify Payroll Records

If you employ staff - whether it’s a small retail team downtown or seasonal workers in Hanwell - it’s critical to ensure your payroll records are clean and complete before year-end.

Check that all pay periods have been processed correctly, including overtime, commissions, and holiday pay. Also, verify that all CRA deductions (CPP, EI, and income tax) were remitted on time.

Fredericton’s small business community sees a lot of part-time and seasonal employment, so even one missed T4 slip or incorrect deduction can create headaches later.

Action Steps:

• Confirm employee details and mailing addresses.
  
• Review all pay runs for accuracy.
  
• Record bonuses or benefits paid in December.

Step 5: Review and Categorize Expenses

Accurate expense tracking helps you claim the right deductions and paint a realistic picture of your business performance. Go through your expense accounts and ensure every transaction is categorized properly - office supplies, travel, marketing, professional services, etc. If you’ve been using accounting software like QuickBooks or Xero, take time to clean up any “uncategorized” entries.

For small businesses in Fredericton, this often includes things like:

• Fuel receipts for client site visits.
  
• Advertising spend from local newspapers or social media.
  
• Meals during business meetings in Oromocto.

Proper categorization now can save hours of confusion during tax preparation later.

Step 6: Inventory Review and Adjustments

If you sell products, your year-end inventory count directly affects your cost of goods sold (COGS). Conduct a physical inventory to verify what you have in stock, what’s been sold, and what may need to be written off due to damage or obsolescence.

For example, a small retailer in downtown Fredericton may discover unsold holiday merchandise or last season’s items that should be marked down or recorded as losses. Document any adjustments in your bookkeeping system so your year-end financial statements reflect reality, not assumptions.

Step 7: Review and Record Fixed Assets

Fixed assets include equipment, vehicles, computers, and furniture - essentially anything that supports your operations long-term. At year-end, review your asset list and note any purchases, disposals, or depreciation.

For instance, if your Oromocto-based construction business purchased a new work truck or retired old tools, these need to be accurately logged and depreciated. This process ensures your accountant can claim appropriate capital cost allowances (CCAs) when filing your taxes.

Step 8: Check Sales Tax (GST/HST) Filings

Fredericton businesses registered for GST/HST must ensure all returns and remittances are up to date. Late filings or missed payments can lead to penalties from the CRA, which no small business owner wants to face.

BaseTend Tip: Verify that:

• All GST/HST collected matches your reported figures.
  
• Credits and adjustments are recorded correctly.
  
• You’ve filed all outstanding periods for the year.

If you’re behind, BaseTend can help you file quickly and get back in good standing before tax season arrives.

Step 9: Review Financial Statements

With all reconciliations, payments, and adjustments made, it’s time to review your key financial statements:

• Balance Sheet: What you own and owe.
  
• Income Statement: What you earned versus spent.
  
• Cash Flow Statement: How money moved in and out of your business.

These reports help you see your true financial health and plan for the coming year.

For example, if your Hanwell catering business saw strong revenue but tight margins, your accountant can recommend expense adjustments or pricing strategies for 2026. BaseTend helps businesses across New Brunswick turn these reports into actionable insights - not just numbers on a page.

Step 10: Prepare for Tax Season Early

Once your books are clean, you’re in the best position to file taxes early and accurately.

Compile all necessary documents:

• CRA business number and prior-year filings.
  
• Payroll summaries (T4s).
  
• Receipts, bank statements, and invoices.
  
• Any correspondence from the CRA.

Fredericton businesses that stay organized now often discover unexpected benefits — from maximizing deductions to identifying new grant or credit opportunities for the coming year.

Step 11: Backup and Secure Your Data

Finally, ensure all financial data is securely backed up - whether in the cloud or on an encrypted external drive. New Brunswick’s unpredictable weather (especially winter storms) can cause power outages or data loss, so digital security matters as much as financial accuracy.

Cloud systems like QuickBooks Online or Xero, paired with BaseTend’s bookkeeping support, ensure your records are safe, accessible, and compliant no matter what happens.

Why Local Expertise Matters for Year-End Success

Outsourcing your bookkeeping to a local team offers more than convenience - it provides context. A Fredericton-based bookkeeper understands your market cycles, local vendors, and even the seasonal rhythm of New Brunswick business life.

For example:

• Retailers see spikes during Harvest Jazz & Blues Festival season.
  
• Contractors adjust schedules for winter slowdowns.
  
• Service providers manage fluctuating demand across Oromocto and Hanwell.

At BaseTend, we don’t just clean up your books - we tailor our process around your business and community.

Start the New Year on Solid Ground

The end of the year isn’t just about closing the books - it’s about setting up success for the next one. When your financials are accurate, reconciled, and compliant, you can make smarter business decisions, plan confidently, and avoid tax-time chaos. Whether you’re running a local café, a construction business, or a growing e-commerce brand in Fredericton, organized books are your secret weapon.

At BaseTend, we specialize in helping small businesses across Fredericton, Oromocto, and Hanwell finish the year strong - with clean books, clear data, and complete peace of mind.

📞 Book a free consultation with BaseTend today to get your year-end bookkeeping in order and start your next financial year ahead of the curve.