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.

Helping guardians access their tax statements is a key part of closing out the year. Many families rely on these records to complete their personal taxes, so providing clear instructions ensures they can easily find the information they need. Guiding families through this process not only supports them during tax season but also reduces the number of questions and requests your program may receive later on. We recommend beginning to share this information with families in early January to give them plenty of time to prepare before tax deadlines.

For more information on how guardians can generate statements, click here.

In addition to helping families, providers should also ensure they have the necessary financial records for their own tax filings. Running key billing reports helps you 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, so you have a full picture of your program’s financials for the year. As a best practice, make sure to review and reconcile these reports with your accounting records to confirm everything is accurate and ready for tax season.

For more information on billing reports, click here.

Reviewing outstanding balances and payments is an important step before closing out the year. Ensuring that all accounts are as up-to-date as possible will help clean up your financial records and reduce the risk of carrying overdue balances into the new year. One helpful tool for this is the Accounts Receivable Aging report, which provides a clear breakdown of unpaid balances by 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 out final invoices or payment reminders, using helpful touches like email templates for customization 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, click here.

Clear communication is key when wrapping up the year, both for families and staff. Your program’s feed is a great tool for sharing end-of-year updates with your community. Consider using it to post newsletters or announcements to families with reminders about accessing tax statements, resolving outstanding balances, and staying informed about any schedule changes or policy updates for the new year. Additionally, the Feed is useful for communicating directly with staff—whether you’re distributing payroll paperwork, sharing schedule updates, or offering 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, click here.