Financial Red Flags to Fix Before the New Year
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As the year winds down, it’s the perfect time to take a closer look at your books and ensure your finances are set up for success in the new year. For many business owners, this is when hidden red flags start to show. It can look like small bookkeeping issues that, left unresolved, can turn into big problems come tax season. We work with businesses of all sizes to identify and fix these financial pain points early, giving you the clarity and confidence to start the year strong.
Uncategorized Expenses
If you have transactions sitting in “Uncategorized Expense” or “Ask My Accountant,” it’s time to clean them up. Not only do uncategorized expenses make your reports inaccurate, but they can also cause confusion for your CPA and lead to incorrect deductions.
Pro tip: Set aside time each month to review and categorize transactions. A clear chart of accounts means clearer insights into your business’s true performance.
Outdated Accounting Systems
If your bookkeeping process still relies on spreadsheets, paper receipts, or outdated software, you’re working harder than you need to. Cloud-based tools like QuickBooks Online streamline everything from expense tracking to reconciliations and they allow your accountant, bookkeeper, and tax preparer to collaborate in real time.
We specialize in helping businesses modernize their systems so they can focus less on data entry and more on growth.
Unreconciled Accounts and Transactions
Reconciliation isn’t just about double-checking your numbers; it’s about making sure your books actually reflect what’s in your bank. Unreconciled accounts or transactions can conceal missing deposits, duplicate transactions, or even fraudulent activity. By reconciling regularly and addressing outstanding, unreconciled transactions, you keep your records accurate and ready for tax season (and you save yourself from last-minute scrambles in March).
Payroll Gaps or Errors
If payroll feels like a constant source of stress, you’re not alone, and there’s good news. JR Bookkeeping has partnered with Paychex to make payroll management easier than ever. While JRB no longer directly handles payroll services, our partnership with the fantastic Paychex team ensures our clients receive reliable, accurate, and compliant payroll support. From employee onboarding to tax filings, Paychex takes care of everything, giving you peace of mind and more time to focus on running your business.
The Bottom Line: Don’t Wait Until January
The best time to fix financial red flags is now, before the new year begins. Cleaning up your books, updating your systems, and reconciling your accounts means you’ll start fresh in January with accurate data and a clear picture of your business’s financial health.
Here at JR Bookkeeping, we specialize in helping business owners, non-profit organizations, and Executive Directors identify gaps, streamline their systems, and maintain accurate records all year long. Whether you’re catching up on old transactions or preparing for growth, our team is here to help you end the year with confidence and start the next one even stronger.
Let’s make your books your business’s strongest asset. Contact JR Bookkeeping today to schedule your year-end review.
At JR Bookkeeping, we specialize in helping businesses in Ventura, Santa Barbara, across California, and beyond maintain healthy financial practices year-round. Need help implementing this checklist? Contact us today for professional bookkeeping solutions tailored to your business—wherever you are!