A practical guide to help vet clinics wrap up their books and get tax-ready.
Why Year-End Is the Perfect Time to Get Your Books in Shape
The end of the year can sneak up fast—especially in a busy veterinary clinic. Between holiday schedules, staff time off, and a full patient load, financial tasks can easily slide to the back burner. (We see you juggling surgeries, emergencies, and a lobby full of anxious pet parents.)
But tackling a few key bookkeeping items before December 31 can make tax season so much easier.
You’ll catch small issues before they turn into big issues, give your CPA clean data to work with, and start the new year feeling confident instead of chaotic.
Here’s a simple year-end financial checklist to help your practice wrap up the year smoothly—and start January fresh, organized, and ready for growth.
1. Review and Reconcile Your Financials
Start by confirming that all your financial accounts are fully reconciled through year-end—bank accounts, credit cards, and any loans or lines of credit.
Reconciliation is how you ensure your books reflect every transaction accurately.
It helps you catch things like:
- Missing deposits
- Duplicate charges
- Expenses placed in the wrong category
When your records are clean, your tax professional can file faster and spot more deductions or opportunities.
If you’re up to date month-to-month, this is just a quick double-check.
If things got backed up (it happens!), now’s the perfect time to get current.
Trust us: it’s a lot nicer to find missing deposits now than during a frantic call with your CPA in March.
Pro tip: A quality vet-specialized bookkeeper provides monthly reconciliation guidance, so year-end feels like a small step—not a scramble.
2. Confirm Contractor Info and Prep for 1099s
If your clinic paid relief vets, consultants, or other independent contractors this year, make sure you have updated W-9s on file.
Remember: You’ll need to file a 1099-NEC for anyone you paid $600 or more by cash, check, or bank transfer.
Quick tip: Payments made via credit card or PayPal are reported by the processor—no 1099 required.
It’s much easier to track down changes to mailing addresses or tax IDs now than in January when deadlines are looming.
More help: How to Prepare for 1099 Filing Season: A Guide for Vet Clinics
3. Double-Check Sales Tax Filings
If your vet clinic sells products or collects sales tax, verify that all filings and payments are up to date through year-end.
Late or missed filings can lead to penalties, interest, or state notices—none of which you want.
Review your state and local requirements to ensure everything’s been filed correctly.
For clinics that file monthly, this is a great time to double-check that every period from January through December has been submitted and paid.
A bookkeeper experienced in veterinary sales tax compliance can keep your filings current to prevent any surprises.
4. Do a Year-End Inventory Count
If your clinic keeps products on hand—like medications, prescription food, or retail items—schedule a physical inventory count before year-end if you haven’t been doing this throughout the year.
Even if you’ve been tracking inventory in software, spreadsheets – or, hey, maybe that dusty old Post-it that doesn’t quite stick anymore that you think might have slipped behind your desk – it’s easy for numbers to drift over time with returns, breakage, or just the daily shuffle.
A manual count helps you:
- Verify that on-hand amounts match your records
- Adjust for shrinkage or miscounts
- Ensure your cost of goods sold (COGS) accurately reflects what was sold this year
Inventory ties directly into your COGS, which affects both your tax deductions and how accurately your profit margins show up on reports.
An inaccurate inventory can make your financial statements—and your tax return—look… off.
Taking the time to correct it now ensures your books show a true picture of your clinic’s performance.
A veterinary bookkeeping professional can help you reconcile your count with your accounting system so you start the new year with clean, accurate data.
5. Reconcile Payroll Liabilities
Before closing out the year, double-check that all payroll-related liabilities have been paid and properly recorded. That includes:
- Health, dental, and vision insurance premiums
- Retirement contributions (401k, SIMPLE IRA, etc.)
- Payroll taxes and withholdings
- Any reimbursements or bonuses owed to team members
It’s easy for small timing differences to sneak in—especially if benefit payments or tax deposits didn’t clear until early January. Verifying now ensures everything from your payroll reports to your W-2s lines up correctly.
A bookkeeper can help reconcile your liability accounts, confirm nothing’s lingering unpaid, and flag anything that might affect your year-end reporting or tax filings.
Your CPA Smiling
6. Meet with Your CPA or Tax Professional
Once your books are current and accurate, share them with your CPA or tax preparer before the year officially closes.
Your tax professional can review your numbers and spot potential opportunities or timing strategies—for example, whether it might make sense to purchase new equipment, prepay certain expenses, or defer income until next year. These are common, fully compliant approaches your CPA can evaluate based on your specific situation.
They can also double-check estimated tax payments, discuss any upcoming business changes, and make sure there are no surprises when it’s time to file.
When your books are clean and current, your CPA has the clarity they need to do their best work.
Bonus perk: your CPA will actually smile when they open your email.
Bringing organized, reconciled books to that meeting makes the conversation more valuable (and usually shorter).
7. Review Cash Flow and Set Goals for the New Year
With the year wrapped up and your financials up to date, zoom out for a minute and look at the bigger picture.
How was your clinic’s cash flow this year?
Were there months that felt especially tight?
—or times when income surged?
Did new service lines or staffing changes affect your profitability?
Some months probably flew, others dragged
—kind of like the difference between a sleepy cat appointment and “We just swallowed a sock.”
Year-end is the perfect moment to reflect on what’s working—and where you want to grow.
Setting financial goals for the coming year—like building a cash reserve, budgeting for equipment, or planning for growth—helps you start strong, stay proactive, and can guide decisions all year long.
Start the New Year Organized and Confident
A little preparation now can make all the difference later.
By reconciling your accounts and payroll liabilities, confirming contractor details, reviewing sales tax filings, counting inventory, and checking in with your CPA, you’ll save yourself—and your team—time, stress, and money when tax season arrives.
At Terrain Bookkeeping, we support veterinary clinics through every season—from monthly reconciliations and payroll support to 1099 prep and sales tax compliance—so your financial foundation stays strong while you focus on what matters most: caring for animals and growing your practice.
Here’s to a calm, confident, and well-organized start to the new year.
