Essential Year-End Steps for QuickBooks® Online Users in 2025

Concluding the fiscal year with precision starts before December knocks on your door. For entrepreneurs employing QuickBooks® Online (QBO), it’s time to shift from frantic last-minute scurrying to methodical, tax-prepared bookkeeping and strategy. With new capabilities and heightened IRS scrutiny, getting organized early can conserve time, mitigate risks, and set the stage for a fruitful 2026.

1. Reconcile Accounts and Clear Transactions

Access Settings → Chart of Accounts → Reconcile. Align your terminal bank and credit-card statements, scrutinize Undeposited Funds, and ensure all unresolved items are documented. QBO’s embedded recommendations spotlight unreconciled items, averting April surprises. Image 1

2. Examine Customer & Vendor Aging Reports

Run Accounts Receivable Aging and Accounts Payable Aging reports. Address uncollectible debts and unsettled vendor invoices urgently—this ensures your profit and loss statements and balance sheet showcase accurate figures, preventing tax preparation delays. Image 2

3. Utilize Enhanced Reporting Features

QBO has augmented its “Modern View” for standard reports, featuring improved filters, faster processing times, and expanded customization options. Pulling reports like Profit & Loss, Balance Sheet, and Cash Flow Forecasts is more efficient with these updates. These enhancements are elaborated on here.

4. Organize and Monitor 1099/NEC for Contractors

For companies utilizing freelancers or contractors, go to Expenses → Vendors → Prepare 1099s. Ensure W-9s are collected, payment thresholds are tracked, and QBO accurately categorizes vendors. Overlooking this can lead to hefty fines and harsh penalties in Q1.

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5. Finalize Books and Confirm Fiscal Settings

In Settings → Advanced, verify “First month of fiscal year.” Thereafter, issue closure balances and secure data from alterations. This guarantees your financial year-end data remains intact, providing your tax preparer with precise records. Image 3

6. Predict for 2026 and Strengthen Cash-Flow Endurance

Deploy QBO’s Cash Flow projections to model scenarios for January through March 2026, accounting for anticipated revenue drops, tax payment timelines, and seasonal expense increases. Preparing in advance provides a financial buffer and ensures foresight—not merely tidying up the previous year’s ledger.

7. Adopt Automation and New Tools

QBO’s new functionalities include easier management of inactive payroll items and e-signature capabilities for payroll documentation. These enhancements boost efficiency and minimize error risk as the year draws to an end. Explore these advancements further here.

In essence, dedicating 30-60 minutes weekly to reconcile accounts, scrutinize vendor/customer aging, generate updated reports, manage contractor duties, and finalize closing settings ensures a smooth transition into 2026. QuickBooks® Online is not just a ledger tool; it’s your partner in strategic financial readiness.

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