Is Your Bookkeeping Naughty or Nice? How to Clean Up Your Books Before the New Year

The end of the year is the perfect time to take a hard look at your financials. Are your books neat, balanced, and tax-ready—or are they a bit on the “naughty” side? For many small business owners, especially in the hospitality world, bookkeeping tends to fall behind during busy months. That’s completely normal—but it’s also completely fixable.

Let’s go through how to clean up your books and start the new year on a clean slate.

Step 1: Identify What’s Missing

Before you can fix messy books, you need to know where things stand. Are all your transactions recorded? Are your bank and credit card accounts reconciled? If not, our Catch-Up & Clean-Up Services are designed to quickly bring your records current—so you can make confident financial decisions heading into tax season.

Question: What are signs my books need cleaning? 

Answer: Common red flags include inconsistent balances, missing receipts, unexplained deposits, or income that doesn’t match your POS reports.

Step 2: Review Expense Categories

Hospitality businesses often have hundreds of small purchases—everything from napkins to new bar equipment. Incorrectly categorized expenses can distort your profit margins and lead to tax filing errors. We’ll help you categorize everything correctly so you can claim every deduction available.

Pro Tip: Track your expenses by department (front of house, kitchen, bar, etc.) to pinpoint where profit is leaking.

Step 3: Reconcile Every Account

This step is critical. Even one missing bank transaction can throw off your balance sheet. Barmann Bookkeeping’s Monthly Bookkeeping Services ensure your accounts are reconciled regularly, preventing small discrepancies from becoming year-end headaches.

Step 4: Analyze Profit and Loss Statements

Once your books are clean, it’s time to look deeper. A year-end review can reveal which menu items or services generate the most profit—and which might be dragging your bottom line. This financial clarity helps you make better business decisions in the coming year.

Step 5: Plan for a Strong Start

Once your books are tidy, consider a professional Accounting Strategy Session to set new goals and budgets for the next year. We’ll help you establish benchmarks for cash flow, payroll, and expenses so you can stay ahead month after month.

FAQ: Why Clean Up Now Instead of Waiting for Tax Time?

Cleaning your books before year-end gives you the chance to fix errors, find missing deductions, and avoid the rush of tax season. It also means your CPA gets accurate, ready-to-file reports right away.

Don’t start the new year with messy numbers. A clean, organized set of books means peace of mind—and a much happier tax season.

 Contact Barmann Bookkeeping for a free consultation and make sure your business lands firmly on the “nice” list.