Why Year-End Cleanup Matters

• Tax savings: Clean categorization ensures you capture all legitimate deductions.
• Audit posture: Books that tie to bank statements and payroll reports are defensible.
• Lender credibility: Loan underwriters and investors judge your financials first.
• Time savings: Filing season is faster when everything is already reconciled.

Reconcile Every Account

Bank, credit cards, merchant clearing, and petty cash—all reconciled through year-end. Unreconciled balances cause tax prep delays and misstatements.

Fix Categorization Errors

• Eliminate “Uncategorized” and “Ask My Accountant.”
• Move equipment purchases to assets.
• Correct COGS vs. expenses.
• Ensure sales tax is a liability, not revenue.

Close Payroll & Owner Pay Correctly

• Match payroll expense to W-2s and filings.
• Separate owner draws/distributions from wages.
• Reimburse personal expenses through an accountable plan, not payroll.

Review Assets & Liabilities

• Capitalize assets above your threshold; prepare depreciation schedules.
• Reconcile loans and credit cards; separate principal vs. interest.
• Clear negative balances and stale items.

Sales Tax, 1099s & Other Filings

Verify sales tax liabilities tie to returns filed. Prepare 1099s for contractors with accurate vendor setup. Check for local filings due at year-end.

Run Year-End Reports

• Profit & Loss by Month — spot anomalies and adjustments.
• Balance Sheet — confirm assets, liabilities, and equity tie.
• General Ledger — review unusual or large entries.

Lock the period once reviewed. That prevents drift and ensures tax-ready books.

Why a Year-End Health Check Saves Time & Money

Our Year-End Bookkeeping Health Check ensures your books are ready before tax prep begins. That means:

• No April scramble.
• No missed deductions.
• No IRS mismatches.
• Confidence when filing and seeking financing.

FAQs

When should I schedule a Year-End Health Check?

Ideally in December or January—before tax prep starts. That way, your returns are built on reconciled, accurate books.

What if my books are a mess from prior years?

We can clean multiple years. Start with the current year so tax filings are right, then work backward strategically.

Will a Year-End Health Check delay tax filing?

No. It accelerates it. Clean books mean faster preparation and fewer extension risks.

Do I need this if I already have a CPA?

Yes. CPAs file returns; they rely on clean books. A Health Check makes their job—and your compliance—smoother.

Can Polaris handle both the Health Check and tax prep?

Yes. We’re licensed Enrolled Agents, authorized in all 50 states. We deliver both clean books and IRS representation.