Year end bookkeeping tidy up: 8 tasks to finish the year clean and ready

“What gets measured gets managed.” — Peter Drucker

Disclaimer

This blog provides general guidance only and is not tailored accounting, financial, HR, or legal advice. Consult a qualified professional before altering bookkeeping or compliance processes.

Introduction

Year‑end tidy‑up is a compliance checkpoint, not a management tool. The bookkeeper owns the process end‑to‑end; the owner sets the aim and reviews only exceptions. Apply economy of effort: eliminate what you can, automate where practical, and delegate the rest. Success is low owner touch, clean ledgers, and confidence that obligations are met.

Eight tasks to finish the year clean and ready

1. Reconcile all bank accounts

   • Daily reconciliations in December; enforce a maximum one‑day timing lag.

   • Escalate large unexplained items within 48 hours.

2. Clear outstanding invoices and bills

   • Chase overdue debtors; pay suppliers where possible.

   • Owner reviews only material disputes or high‑risk items.

3. Review payroll and superannuation

   • Confirm all wages and super contributions are lodged and up to date.

   • Escalate compliance breaches or cashflow risks immediately.

4. Check GST coding and BAS alignment

   • Use automation for coding rules; ensure BAS‑ready status.

   • Notify owner only for breaches or late liabilities.

5. Write off bad debts

   • Apply policy thresholds; bookkeeper proposes write‑offs.

   • Owner signs off on material items only.

6. Update asset register and depreciation

   • Bookkeeper updates the register; accountant applies depreciation.

   • Owner reviews only high‑value acquisitions.

7. Close suspense and clearing accounts

   • Zero out temporary accounts and chase residuals.

   • Escalate unexplained balances with a 48‑hour recovery plan.

8. Prepare the year‑end pack (minimum viable)

   • Digital records only; avoid paper.

   • Accept that a future audit may take ~40 hours to assemble — cheaper than weekly collation now.

Implementation checklist

• Ownership: Bookkeeper owns year‑end tidy‑up end‑to‑end.

• Intent: Finish clean and ready; owner sees only exceptions.

• Automation: Bank rules, GST coding, payroll checks.

• Documentation: Minimum viable, digital storage, video SOPs for training.

• Escalation: 48‑hour recovery for breaches and unexplained balances.

• Sign‑off: Owner approves material write‑offs and policy exceptions.

Next steps

1. This week: Confirm bookkeeper authority and exception thresholds.

2. Within 14 days: Complete reconciliations, payroll checks, GST coding; clear suspense accounts.

3. Within 30 days: Finalize the year‑end pack; lock the escalation playbook.

Useful AI prompts

• “Draft a year‑end bookkeeping SOP as a video script for bookkeepers.”

• “Generate a minimum viable audit readiness checklist for year‑end.”

• “Create a debtor chase template for overdue invoices with escalation thresholds.”

Mission Command Principles for Business

At Mission Command Business, every system and checklist is built on the principles of mission command:

• Build mutual trust: Leaders trust teams to act; teams trust leadership to support.

• Create shared understanding: Everyone knows the vision, objectives, and constraints.

• Provide clear commander’s intent: Goals and outcomes are explicit; execution is flexible.

• Exercise disciplined initiative: Teams solve problems without waiting, aligned to strategy.

• Use mission orders: Objectives are assigned; methods are left open.

• Accept prudent risk: Smart risks are encouraged for innovation and growth.

These principles ensure the owner sets the aim, the team executes, and the system flags exceptions — without dragging the owner into the weeds.