How to Prep for Year-End Without Panic

November might seem early to think about preparing your accounting records for your tax return filing, but that’s exactly why it’s the best time to start! You still have time to make adjustments and catch mistakes in your accounting system, while avoiding the January rush.  

Here are steps you can take to prepare, without the stress:  

1. Review Your Transactions for Accuracy  

Small errors now can cause big headaches later. Take the time to check that transactions are properly categorized and clean up any lingering “uncategorized” items.  

Pro Tip: If you’re crunched for time, start with your biggest expense categories; those are the transactions that cause the most stress at year-end.  

2. Check Your Payroll Records  

Make sure all wages, benefits, and payroll taxes are correctly recorded in your accounting system. This will make year-end forms (like W-2s or 1099s) much easier.    

Pro Tip: Wages should be tied out to your W-2 reports and this can be done ahead of time by running a current W-2 report in your payroll system. Compare those numbers to what you have in your accounting system. If they don’t match, now is the time to find the discrepancies.  

3. Prepare for 1099 Filings   

1099s need to be filed by January 31, 2026 for any independent contractors you paid $600 or more in 2025. Common independent contractors in childcare include: trainers, nurses, auxiliary programs (could include Music and Spanish programs or vendors hired to perform at your school), accountants, attorneys, plumbers, electricians, or handyman services.   

Pro Tip: Going through your General Ledger now and looking for W-9s that need to be requested will ensure you are ready to file by the deadline. For more information on 1099 rules, check out the IRS website.  

4. Confirm Balance Sheet Accounts are Reconciled  

Your Balance Sheet accounts should match your bank, credit card, and loan account statement balance. Getting all reconciliations caught up now gives you time to investigate and fix any variances.  

Pro Tip: Reconcile accounts monthly, but do an extra check before year-end prep. 

Year-end prep doesn’t have to be overwhelming. With a little planning and consistency, you’ll be walking into 2026 organized, confident, and ready to grow.