As the year comes to a close, it’s important for providers to take a few key steps to wrap up financials and prepare for a smooth start to the new year. From helping families access tax documents to reviewing outstanding balances and organizing your own reports, these tasks can help ensure everything is in order for both your program and the families you serve. This guide will walk you through essential end-of-year processes, including financial reporting, communication with families and staff, and helpful reminders to close out the year confidently.

Assisting guardians in accessing their tax statements is an important part of wrapping up the year. Since many families depend on these documents to complete their personal tax filings, providing clear, timely instructions helps ensure they can easily locate the information they need. Guiding families through this process not only supports them during tax season but also helps reduce the volume of questions and requests your program might receive later. We recommend sharing this information with families starting in early January to give them ample time to prepare ahead of tax deadlines.

To learn more about how guardians can generate their tax statements, please refer to this article

In addition to assisting families, providers should also ensure they have the necessary financial records for their own tax filings. Running key billing reports helps reconcile income, track payments received, and organize records for your accountant or tax preparer. We recommend running these reports at the end of December or in early January to get a comprehensive overview of your program’s financials for the year. As a best practice, take the time to review and reconcile these reports with your accounting records to ensure everything is accurate and prepared for tax season.

For more information on billing reports, refer to this article.

Reviewing outstanding balances and payments is a crucial step before closing out the year. Ensuring all accounts are up-to-date will help clean up your financial records and minimize the risk of carrying overdue balances into the new year. The Accounts Receivable Aging report is a useful tool for this, as it provides a clear breakdown of unpaid balances based on how long they’ve been outstanding. We recommend reviewing this report and addressing any unpaid invoices with families by sending final reminders or statements.

As a best practice, consider sending final invoices or payment reminders. Utilize customizable email templates and suggested follow-up timelines to encourage timely responses. Once payments are collected or follow-ups are completed, be sure to mark accounts as settled and record any final payments to officially close out your program’s financials for the year.

For more information on managing outstanding balances, refer to this article.

Clear communication is essential when closing out the year, both for families and staff. Your program’s feed is an excellent tool for sharing end-of-year updates with your community. Use it to post newsletters or announcements for families, reminding them about accessing tax statements, resolving outstanding balances, and staying informed about any schedule changes or policy updates for the new year.

The Feed is also valuable for communicating directly with staff, whether distributing payroll paperwork, sharing schedule updates, or expressing year-end acknowledgments and gratitude. Proactively using the Feed helps ensure everyone is aligned and prepared as you move into the new year.

For more information on using the Feed, refer to this article.