Third Quarter Check-In: A Year-End To-Do List for Your Business

Owning your own business is exciting. You’ve got the product, the service, and the clients, but now comes the part most new entrepreneurs overlook: keeping your books clean and ready for tax time.

As we wrap up the third quarter (by the end of September), this is the perfect time to pause and review your numbers. Waiting until December can leave you scrambling. Instead, use this transition period to clean things up, make adjustments, and enter Q4 confident and prepared.

Here’s a practical to-do list to guide you:

1. Reconcile All Accounts

Make sure your bank accounts, credit cards, and loans are reconciled through September. This ensures your balances match reality and helps you catch any errors now, rather than later.

What this means:

Ensure that the transactions in your bookkeeping system (or bank statements, if you don’t use software yet) accurately reflect what actually occurred in your bank account. Did that client payment actually hit? Did you record that software subscription you paid for? Reconciling helps you catch mistakes before they snowball.

2. Review Your Profit & Loss

Pull a year-to-date Profit & Loss report. Compare your revenue and expenses to those of last year and your budget (if applicable). This is a great time to spot overspending or plan for tax-saving strategies.

What this means:

Even if you’re just starting, run (create) a report showing how much you’ve made and how much you’ve spent since you opened your doors. If you’re using QuickBooks, it’s a button-click. If you’re still in Excel, total your income and subtract your expenses. It’s your first look at whether your business is making money or just breaking even.

3. Clean Up Outstanding Invoices & Bills

Unpaid invoices? Follow up before the year-end rush. Past-due bills? Get them squared away or create a payment plan. Clearing the decks now will make cash flow smoother as we head into Q4.

What this means:

Did you send invoices to clients that haven’t been paid? Send a reminder now. Do you have bills sitting unpaid? Decide whether to pay them off or set a schedule. Cash flow refers to the timing of money coming in versus money going out, and it is what keeps new businesses alive.

4. Organize Your Receipts

If you’ve been tossing receipts in a drawer (or letting them pile up in your email), now’s the time to upload them into your bookkeeping software. Digital copies attached to transactions make tax time a breeze.

What this means:

Start now with a simple habit: every time you get a receipt (digital or paper), save it in one place. You can use a folder on your computer, a shoebox, or an app. Attaching receipts to expenses will save you stress at tax time. Plus, it makes you look professional if you’re ever audited.

5. Check Payroll & Contractor Payments

Review that all payroll is up-to-date and contractor payments are properly tracked with W-9s on file. This avoids January headaches when 1099s are due.

What this means:

If you’ve started paying help (maybe a family member, part-time employee, or contractor) make sure you’re tracking it correctly. Employees go through payroll. Contractors should give you a W-9 form so you can file the right paperwork at year-end.

6. Assess Your Tax Position

Talk with your bookkeeper or tax professional about your year-to-date income. If profits are higher than expected, you may need to adjust estimated tax payments or look at year-end deductions and retirement contributions.

What this means:

Don’t wait until April to find out you owe thousands. A brief conversation with a bookkeeper or tax professional in the fall can help you plan effectively. Maybe you’ll set aside a percentage of income now or make a retirement contribution before December.

7. Review Inventory & Fixed Assets

If you carry inventory, perform a physical count to ensure your books are accurate. For equipment, consider whether repairs or purchases are necessary before the end of the year.

What this means:

If you sell products, count what you have on hand. This ensures your records are accurate and alerts you when it’s time to restock before the holidays.

8. Set Q4 Goals

With three months left, what do you want to accomplish? Whether it’s hitting a revenue target, tightening expenses, or preparing for growth in the new year, clarity now helps you stay focused.

What this means:

Don’t overcomplicate it. Maybe your goal is: “Bring in three more clients.” Or “Save $500 for taxes.” Or “Pay off the business credit card.” Small goals keep you moving forward.

Think of Q3’s close as a reset button. By reviewing your books now, you’ll walk into the last quarter prepared, not panicked, and you’ll set yourself up for a much smoother tax season.