A brand-new year brings a clean slate—and for small business owners across Kaufman, Henderson, Anderson, Van Zandt, and Rains Counties, it’s the perfect time to set up solid accounting practices. Good accounting isn’t just paperwork; it’s the foundation of smart decision-making, financial clarity, and long-term business success.
The Trinity Valley SBDC works with hundreds of entrepreneurs each year who want to simplify their systems, clean up their books, or finally get confident with their numbers. This guide breaks down the essential accounting steps every small business should take to start the year right.
Why the New Year Is the Best Time to Reset Your Accounting:
Many small business owners understandably avoid bookkeeping until it piles up like a mountain of receipts. But the New Year offers a natural fresh start: new goals, new records, and the opportunity to create healthier financial habits. Starting early with your accounting tasks will help you:
- Stay compliant with federal and Texas tax requirements
- Keep accurate records for potential loans or grants
- Understand your true profitability
- Avoid cash-flow surprises
- Make smarter decisions all year long
When you begin January with clean, accurate books, the rest of the year becomes easier to manage.
Below we’ll give you a simple 7-step plan to get you ready to tackle accounting in 2026:
1. Close Out Last Year’s Books:
Before you launch into the new year, make sure last year is wrapped up. Even if you’re already working with accounting software like QuickBooks or Wave, take the time to review everything carefully. Make sure you complete these essential tasks:
- Reconcile all bank, credit card, and loan accounts
- Verify customer balances and outstanding invoices
- Check vendor statements and unpaid bills
- Ensure all deposits, refunds, and expenses are recorded
- Label or file all receipts, digital or paper
If anything doesn’t match, fix it now; your future self will be grateful.
2. Set Up or Update Your Chart of Accounts:
Your Chart of Accounts is basically the backbone of your financial system. It tells your accounting software where every transaction belongs. The new year is the perfect time to do the following:
- Add new revenue streams
- Remove outdated accounts
- Reorganize confusing categories
- Create more specific expense labels
Clearer financial categories lead to clearer financial decisions. And if your Chart of Accounts looks like alphabet soup, the Trinity Valley SBDC can help you simplify it.
3. Review Your Accounting Software and Tools:
Technology can make your accounting easier, if it’s up to date and aligned with your needs. The beginning of the year is a smart time to evaluate whether what you’re using still works. Here are some questions to ask to see if you have the right accounting tools:
- Is my software the right fit for my business?
- Are there features I’m not taking advantage of?
- Do I need to upgrade, switch, or add integrations?
- Is my payroll system accurate and compliant?
If your system is slowing you down, it might be time for a change. The SBDC can help you compare options and choose the right tools for your business size.
4. Create or Refresh Your New Year Budget:
A budget is more than numbers, it is a roadmap. A well-panned budget helps you anticipate challenges and identify opportunities before they appear. A good new year budget should include:
- Expected revenue
- Fixed and variable expenses
- Seasonal shifts
- Payroll and contractor costs
- Inventory purchases
- Loan payments
Once your budget is set, compare it to your actual numbers each month. This habit alone can improve financial health dramatically.
5. Update Payroll and Employee Records
Whether you have one employee or twenty, it’s essential to keep payroll records accurate. In Texas, small employers must maintain up-to-date documentation, including W-4s, employment agreements, and pay rate changes. Take a few extra minutes in January to do the following:
- Update employee addresses and tax forms
- Verify hourly rates, salary adjustments, or overtime rules
- Organize contractor 1099 forms
- Check PTO or benefits balances
- Confirm all payroll taxes are set up correctly
Accurate payroll protects both your business and your team.
6. Set Up Monthly Accounting Checkpoints
One of the best habits you can create in the New Year is a monthly accounting routine. Instead of letting bookkeeping pile up, schedule small recurring check-ins. Here is an example of what to do each month:
- Reconciling accounts
- Categorizing transactions
- Reviewing profit and loss statements
- Checking inventory levels
- Updating sales tax records
- Measuring progress against your budget
Even one hour a month can prevent major headaches later.
7. Meet With a Financial Advisor or SBDC Advisor
Many business owners assume they must navigate accounting alone. But you don’t have to. The Trinity Valley SBDC provides:
- No-fee financial analysis
- Budgeting tools
- Software guidance
- Business plan updates
- Loan and funding preparation
A 1:1 meeting can give you clarity, confidence, and a clear plan for the year ahead. Schedule a session with Miranda Perry, Business Advisor, Click for Miranda’s online calendar tool
Plan for a More Organized, Confident Business Year Ahead:
Starting the New Year with strong accounting habits sets your business up for stability and growth. Whether you operate in Kaufman, Henderson, Anderson, Van Zandt, or Rains County, taking time now to get your books in order will make every month that follows easier and more profitable.
When you’re ready for support, the Trinity Valley SBDC is here to help you strengthen your bookkeeping, analyze your financials, and build a thriving East Texas business.
Trinity Valley SBDC (TVCCSBDC) is a partnership program with the U.S. Small Business Administration, the State of Texas, and Trinity Valley Community College. Advising services are offered by Trinity Valley SBDC without regard to race, color, age, national origin, religion, sex, or disability. Special provisions will be made for limited English speaking individuals and those with disabilities. Those interested may contact TVCC SBDC at 903-675-7403.
All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Small Business Administration or other funding partners.