Closing out the year smoothly begins before December arrives. For business owners using QuickBooks® Online (QBO), now’s the time to move beyond last-minute scrambles and step into structured, tax-ready bookkeeping and planning. With new features and increased IRS scrutiny, lining things up ahead of year-end can save time, reduce risk and set you up for 2026.

1. Reconcile Your Accounts and Clean Up Transactions

Go to Settings → Chart of Accounts → Reconcile. Match your ending bank and credit-card statements, review Undeposited Funds, and confirm all outstanding items are accounted for. QBO’s built-in guidance highlights unreconciled items so you don’t get hit in April.

2. Review Customer & Vendor Aging Reports

Run Accounts Receivable Aging and Accounts Payable Aging reports. Address any uncollectible receivables and outstanding vendor bills now—this ensures your profit-and-loss and balance sheet reflect accurate balances and your tax preparation doesn’t get delayed.

3. Use the Enhanced Reporting Features

QBO has expanded the “Modern View” of standard reports: you’ll find better filters, faster load times, and more customization. These updates mean you can pull reports like Profit & Loss, Balance Sheet and Cash Flow Forecasts more efficiently.

4. Set Up and Track 1099/NEC for Contractors

For businesses using freelancers or independent contractors, go to Expenses → Vendors → Prepare 1099s. Make sure W-9s are collected, payment thresholds tracked, and QBO flags vendors properly. Missing this step now can cause costly filings and penalties in Q1.

5. Close the Books & Confirm Fiscal Settings

Under Settings → Advanced, confirm the “First month of fiscal year”. Then, issue closing balances and lock down changes. This ensures your year-end data won’t be accidentally altered and your tax preparer receives clean books.

6. Forecast for 2026 and Build Cash-Flow Resilience

Use QBO’s Cash Flow projections to model January-March 2026: anticipated revenue dips, tax payment schedules, seasonal cost spikes. Preparing now gives you cushion and clarity—not just tidying up last year’s records.

7. Leverage Automation and New Tools

QBO’s latest enhancements include easier pay item clean-up (inactive payroll items) and e-signatures for payroll documents. These tools improve efficiency and reduce error risk ahead of year-end chaos. 

Bottom line: Taking 30-60 minutes each week now to reconcile accounts, review vendor/ customer aging, run updated reports, track contractor obligations, and complete your closing settings means you’ll walk into 2026 with clarity—not chaos. QuickBooks® Online isn’t just about recording transactions; it’s about strategic readiness.