What should a small business do at the end of the year?

Close out the money (unpaid invoices, bank reconciliation, subscriptions, gift cards and deposits you still owe), count stock, gather tax paperwork, back up customer and booking records, and then set up the new year: prices, policies, opening hours, budget and goals. Splitting it into four short sessions makes it manageable.

When are W-2 and 1099-NEC forms due for 2026?

The IRS says 2026 Forms W-2 must be furnished to employees and filed with the SSA by 1 February 2027. Form 1099-NEC is due 31 January to both the IRS and the recipient, and because 31 January 2027 is a Sunday, the due date moves to the next business day, Monday 1 February 2027.

Do I need to send a 1099-NEC to a contractor I paid in 2026?

Generally yes if you paid a non-employee $2,000 or more for services in your business during 2026. That threshold went up from $600, which applied to payments made before 2026. Ask contractors for a Form W-9 now so you have their details in January, and check the rules with your accountant.

How long should I keep business records?

In the US, the IRS says to keep records for 3 years in most cases and employment tax records for at least 4 years, with longer periods in some situations. In the UK, self-employed people must keep records for at least 5 years after the 31 January submission deadline for the tax year.

Should I do a stock count at the end of the year?

If you sell products, yes. A count on the last trading day of the year gives you the value of the stock you are carrying into 2027, shows what did not sell, and makes your books and your reorders more accurate. Salons, makers and shops with retail shelves all benefit.

Can GBot help with year-end?

With the writing and the thinking, yes. Mia can draft unpaid invoice reminders, a W-9 request to contractors and a thank-you message to regulars. Max can help you read the numbers you paste in, and Sam can rework your 2027 price list. GBot does not connect to your bank, keep your books, run payroll or file taxes.

Small Business Year-End Checklist: Start 2027 Clean

The short answer: a small business year-end checklist has four parts. Close out the money (unpaid invoices, bank, subscriptions, gift cards and deposits you still owe). Get stock and tax paperwork ready (stock count, W-2s, 1099s or Self Assessment). Tidy customers and records (backups, FAQ, reviews, thank-yous). Then set up 2027 (prices, policies, opening hours, budget). Do one part per session over the last weeks of December and you start January with nothing hanging over you.

This checklist is for cleaners and home services, trades, salons and barbers, gyms and studios, shops, makers, clinics and small agencies. It is a planning guide, not tax or accounting advice. Your accountant has the final word on your own filings.

Why do a year-end close-out at all

January is when the paperwork lands. US employers have W-2 and 1099 forms due within a month, UK sole traders have Self Assessment due on 31 January, and new wage rates and price changes start around the same time. A short close-out in December means you hand clean numbers to your accountant, you know who still owes you money, and you know what you owe your customers.

Session 1: money (about 2 hours)

Chase unpaid invoices. List every invoice still open, oldest first. Send a polite reminder now, before the holidays slow everyone down. Our overdue invoice reminder templates give you the wording and a schedule.
Reconcile the bank account. Match every payment in and out for the year against your records. Mark anything you cannot explain and ask about it while you still remember.
Separate business and personal spending. If any personal payments went through the business account (or the other way round), note them for your accountant.
Cancel subscriptions you no longer use. Go through card statements for software, apps and memberships. One unused $15 a month tool is $180 a year.
List what you still owe customers. Unused gift cards, prepaid packages, class passes and deposits for 2027 jobs are promises you have to keep. Write down the total so it does not look like spare cash. See our gift card policy template if you do not have clear rules yet.
Check your cash for January. Rent, wages, tax bills and supplier invoices often cluster in the first weeks of the year.

Session 2: stock and tax paperwork (1 to 2 hours)

Count your stock

If you sell anything (a shop, a maker, a salon with a retail shelf, a gym with supplements), count stock on your last trading day of the year. Record quantity and cost price for each item. Note what did not sell all year: that is cash sitting on a shelf, and a candidate for a January clear-out.

US: forms due in early 2027

Form W-2 for employees. The IRS says 2026 Forms W-2 must be furnished to employees and filed with the SSA by 1 February 2027 (IRS W-2 and W-3 instructions).
Form 1099-NEC for contractors. Due 31 January to both the IRS and the recipient (IRS Publication 1099). When a due date falls on a weekend, it moves to the next business day, so for 2026 forms that is Monday 1 February 2027. For payments made in 2026, the reporting threshold is $2,000, up from $600 for payments made before 2026 (IRS: Am I required to file a Form 1099?).
Collect W-9s now. Ask every contractor you paid in 2026 (a cleaner who subcontracts, a freelance designer, a part-time bookkeeper) for a current Form W-9 before the holidays.
Fourth-quarter estimated tax. If you pay estimated tax, the final 2026 payment is due 15 January 2027 (IRS Form 1040-ES).

UK: Self Assessment and payroll

Self Assessment. Online returns and the tax you owe for the 2025 to 2026 tax year are due by 11:59pm on 31 January 2027 (GOV.UK Self Assessment deadlines).
Payroll year. The UK tax year ends on 5 April, not 31 December, so your final payroll report and P60s come later (GOV.UK payroll annual reporting). December is still a good time to check staff details are up to date.

Session 3: customers and records (about 1 hour)

Back up your records. Export your client list, bookings, invoices and receipts from each app you use and save a copy somewhere you control. The IRS says to keep records for 3 years in most cases and employment tax records for at least 4 years (IRS: How long should I keep records?). In the UK, self-employed people must keep records for at least 5 years after the 31 January deadline (GOV.UK).
Tidy contact details. Remove duplicates and old numbers, and note who asked not to be contacted.
Turn the year's questions into your FAQ. Scroll your messages and write down the ten questions customers asked most. Answer them once on your website. Our guide on how to write an FAQ page has a template.
Thank your regulars and ask for reviews. A short thank-you in December is remembered. See how to get more Google reviews for the ask.
Check your Google listing. Make sure your holiday hours are set and your phone number, link and photos are current.

Session 4: set up 2027 (1 to 2 hours)

Prices. Use the 2027 price worksheet to check each service against your new costs, including any 2027 minimum wage increase.
Policies and templates. Update the year on your terms, cancellation policy, quote template and website footer. Add a validity date to quotes.
Opening hours and time off. Block staff holidays and your own time off now, using the bank holidays and dates in our 2027 marketing calendar.
Budget and goals. Build a simple 2027 budget and pick two or three 2027 goals.
A first-Monday routine. Put 30 minutes in your calendar on the first Monday of each month to send invoices, check the bank and answer anything waiting.

Where to start by business type

Business	Start with
Cleaner or home services	Unpaid invoices and W-9s from subcontractors
Trades	Open quotes, deposits for 2027 jobs, materials left over
Salon or barber	Prepaid packages, gift cards, retail stock count
Gym or studio	Class passes and memberships that renew in January
Shop or maker	Stock count and the items that did not sell
Agency or freelancer	Retainers, open invoices, 1099s for freelancers you hired

Copy-paste messages

Unpaid invoice before the holidays:

Hi Dana, a quick note before the holidays: invoice 1043 for $480 (sent 14 November) is still open. Could you let me know when it will be paid? The bank details are on the invoice. Thanks, and happy holidays.

W-9 request to a contractor:

Hi Leo, thanks for your work with us this year. To send your 1099 on time in January, could you send me a completed Form W-9 by 20 December? Reply here if you have any questions.

Thank-you to regulars:

Thank you for choosing us this year. It means a lot to a small business like ours. Our holiday hours are on our Google listing, and we reopen on 4 January. See you in 2027.