Close Out Strong, Start the Next Year Stronger
An eight-part year-end review — reconciling records, wrapping up billing, maximizing deductions, and closing the books clean before January.
Year-end isn’t just a tax deadline — it’s the one point in the year you can actually see the whole picture: what came in, what went out, and what’s still unresolved. This is eight steps: reconcile your records, close out billing, maximize what you can still deduct, set next year’s targets, lock down compliance, invest in the tools that’ll make next year easier, build a safety net, and put a review cadence in place so this doesn’t pile up again.
1 Review & Reconcile Your Financial Records
2 Evaluate Your Billing Process
3 Assess Tax Obligations
4 Set Financial Goals for the New Year
5 Ensure Compliance & Secure Records
6 Invest in Tools & Professional Support
7 Build a Financial Safety Net
8 Plan for Ongoing Financial Health
This applies whether you’re a therapist, psychologist, licensed clinical social worker, professional counselor, or marriage and family therapist — any mental healthcare provider closing out the year.
Questions we get a lot
Reconcile your bank and practice management records, follow up on unpaid claims and invoices, review deductions you haven’t taken yet, maximize retirement and FSA contributions before they’re lost, and confirm your records are HIPAA-compliant and securely archived.
If you’ve been setting aside 25–30% of income throughout the year, year-end is when you confirm that reserve actually matches what you owe, not when you start saving. If it’s short, better to know before you file than after.
$680 for a Health FSA, up from $660 in 2025. The Dependent Care FSA limit rose more significantly, from $5,000 to $7,500 per household, under the One Big Beautiful Bill Act.
For 2026 wages and payments, both are due to recipients and the IRS/SSA by February 1, 2027 (the usual January 31 deadline shifts because it falls on a Sunday). The 1099-NEC threshold is now $2,000 for 2026 payments, up from the longstanding $600.
A clean year-end close makes January easier.
If you want a second set of eyes before you close the books, we can go through your numbers with you.
Disclaimer: This checklist is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, federal and state laws and regulations can change without notice. Decisions based on this information should be made in consultation with a licensed CPA or attorney familiar with your specific situation. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this checklist.