Year-End Bookkeeping Checklist for Shops, Salons and Restaurants

Every January I get the same call. Somebody's tax appointment is coming up, the books stopped getting touched around August, and now there are four months of deposits nobody has looked at.

It's fixable. It's just a lot cheaper to fix in November than in March.

If you run a retail shop, a salon or a restaurant in the Capital Region, here's what I'd get done before December 31.

1. Catch the books up through October now

Don't wait for the year to end. Reconcile every bank and credit card account through October 31 this month, then do November in early December. That way December is the only month left when the year closes, instead of the whole fall.

Reconciling means your books match the bank statement to the penny, not that QuickBooks "looks about right."

2. Check your sales against your processor, not your bank

Square, Clover, Toast and the rest take their fees before the money lands in your account. If your books only record what hit the bank, your sales are understated and your card fees are missing.

Pull the processor's sales summary for the year and hold it next to the sales number in your books. If they don't match, that's the first thing to fix.

3. Get ready to count inventory on December 31

If you sell product (retail, a salon with a retail shelf, a restaurant with food and liquor on hand), you need a count as of year-end. Pick the day, decide who's counting, and print or export a count sheet now so it isn't a scramble on New Year's Eve.

The count is what turns "everything we bought this year" into what you actually used. Without it, your cost of goods is a guess.

4. Know what gift cards are still outstanding

A gift card sold in December isn't income yet. It's money you owe a customer until they use it. If you've been recording gift card sales as sales, your income is overstated and you have no record of what's still out there.

Get a report of outstanding gift card balances from your POS and make sure your books show that balance as a liability.

5. Line up your NY sales tax before the December return

Quarterly filers have the September through November return coming up. For 2026 it's due Monday, December 21, because the 20th falls on a Sunday. (Check the NY Tax Department's 2026 filing calendar for your own filing frequency.)

The return works from gross sales, which is one more reason item 2 matters. Take care of this one before the holidays, not during them.

6. Pull personal spending out of the business accounts

Every year I find the gas station runs, the family dinner, the Amazon order that was for the house. They don't belong in the business books.

Go through the year and move anything personal to owner's draw, not an expense. It's easier to remember what something was in October than in April.

7. Write down what you bought that's going to last

New chairs for the salon, a walk-in cooler, a new POS system, a display case. Equipment purchases usually aren't treated like regular supplies, and how they're handled on the return depends on the purchase and your situation.

Keep the receipts together and make a quick list with the date, what it was and what you paid. Whoever does your return will want that list.

The short version

None of this is complicated. It just doesn't get done in December because December is your busiest month. Do the boring part now and January is a normal month instead of a fire drill.

If you're behind and want someone to just handle it, that's most of what we do: catch-up and monthly bookkeeping for small businesses around Clifton Park, Saratoga and the Capital Region, done 100% remotely.

General information, not advice for your specific situation.

FAQ

When should I start my year-end bookkeeping?

Start in October or November. Catch the books up through October first, so the only month left when the year closes is December.

Do I need to count inventory at year-end if I'm a small shop?

If you sell product, yes. A count as of December 31 is what lets your books show what you actually used during the year instead of everything you bought.

Are gift card sales income when I sell them?

Generally no. Until the customer uses the card, it's a balance you owe them, so it belongs on your books as a liability rather than in sales.