December 2025 Reminders
December is the final countdown to year-end. It’s the time to wrap up your financials, finalize your tax strategies, and set the foundation for a strong start to 2026. With many holidays and a short work month, staying focused and proactive now will prevent last-minute stress and missed deadlines later. Here are the most important accounting and bookkeeping reminders for December 2025:
Accounting and Tax Deadlines
Year-End Tax Moves
- Make any final tax-deductible business purchases by December 31.
- Pay outstanding vendor bills, contractor fees, and employee bonuses before year-end to count toward 2025 expenses.
- Consider making retirement plan contributions (such as to a SEP IRA or Solo 401(k)) before December 31 if you want to deduct them this year.
Sales Tax Filings
- If you file monthly sales tax returns, check for December or early January deadlines depending on your state.
Final Payroll of the Year
- Ensure your final payroll run for 2025 includes any year-end bonuses.
- Verify that year-to-date payroll totals are accurate.
Prepare for W-2 and 1099-NEC filings due in January 2026.
Bookkeeping Recommendations
Close November’s Books & Prepare December Entries
- Reconcile bank, credit card, and loan statements.
- Record any missing expenses, income, or reimbursements.
- Check for duplicate or uncategorized transactions and clean them up.
Review Accounts Receivable & Payable
- Collect on outstanding invoices and consider offering incentives for early payment.
- Pay off as many outstanding vendor invoices as your cash flow allows.
Finalize Asset Purchases
- Capital purchases such as equipment, computers, or vehicles must be in service by December 31 to qualify for Section 179 or bonus depreciation.
Inventory Count (If Applicable)
- If you sell products, conduct a year-end inventory count and adjust your records.
- Write off any obsolete, damaged, or unsellable inventory.
Financial Planning & Strategy
Year-End Tax Planning
- Meet with your accountant or tax advisor to:
- Estimate 2025 tax liability
- Adjust Q4 estimated tax payments (due in January)
- Maximize tax-saving strategies before the deadline
- Estimate 2025 tax liability
Review Financial Reports
- Generate year-to-date:
- Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
- Profit & Loss Statement
- Use insights from these reports to finalize your business strategy for 2026.
Prepare for 2026 Budgeting
- Review 2025 actuals and start creating your 2026 budget.
- Set clear financial goals, cost-saving initiatives, and growth projections.
Prep for Year-End Reporting
- Organize and securely store:
- Receipts and invoices
- Contractor payment records and W-9s
- Loan and lease agreements
- Receipts and invoices
Evaluate Software and Tools
- Reflect on your bookkeeping or payroll systems—do they still meet your needs?
- Consider switching or upgrading tools before the new year begins.
Final Thoughts
December is your final chance to set things right for the year. With thoughtful planning and attention to detail, you can end 2025 feeling accomplished and ready for the opportunities ahead. Don’t wait until January—handle the essentials now.
Need help closing your books or preparing for tax season? VirtuCount Bookkeeping, Accounting, & Tax is here to help. Let’s wrap up 2025 together- strong, organized, and confident.
Don't wait Another Minute
