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A GovCon-Friendly Guide to Year-End (Without the Stress)

2025 2026 checklist

For many government contractors, year-end can feel like a whirlwind of deadlines, reconciliations, and last-minute cleanup. But it doesn’t have to be a stressful sprint. With a bit of early attention to the right areas, you can wrap up the year with confidence and step into January without the traditional chaos.


This guide breaks the process into manageable pieces. Practical, low-pressure steps that help your team close the books smoothly and start the new year on solid footing.



1. Start with the Usual Trouble Spots


Some areas consistently cause the most friction during year-end close. Tackling these early gives you a smoother runway into January.


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Timesheets & Labor Accuracy

Before holiday schedules scatter your team, verify that all timesheets are submitted, labor is coded correctly, and payroll entries line up. Clean labor data keeps everything else running smoothly, from billing to indirect rates.


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Unbilled Revenue & Work-in-Process (WIP)

Scan for projects with unbilled revenue or lingering WIP. Unresolved items now often become bottlenecks later. A quick review can prevent revenue recognition issues and billing delays in January.


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Accounts Payable & Receivable Cleanup

Aging receivables, unprocessed vendor invoices, and unapplied cash happen to every GovCon organization. Clearing these out early tightens your financial picture and helps avoid messy adjustments after the year closes.



2. Check Whether Your System Is Telling One Cohesive Story


One of the easiest ways to derail year-end? Subledgers and the general ledger that don’t match.


A brief reconciliation sweep can save hours later. Pay attention to:

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  • AR and AP balances

  • Project ledger totals

  • Unbilled revenue

  • Indirect expense pools

  • Inventory balances


Think of it as confirming that all the numbers agree on the narrative. If they don’t, fix the inconsistencies while you still have breathing room.



3. Refresh Projects, Assets, and Administrative Details


The end of the year is a natural moment to tidy up areas that tend to collect clutter throughout the year.


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Project Maintenance

Close tasks that are complete, update project statuses, and ensure billing is caught up. Accurate project data sets the stage for better reporting and cleaner audits.

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Fixed Assets

Make sure all asset additions and retirements are recorded and depreciation is updated. A little attention here goes a long way toward accurate financials.

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Review User Access

Year-end is an ideal checkpoint for system permissions. Remove inactive users, tighten access levels, and confirm everything aligns with your internal controls.



4. Prepare Your System for 2026 Now – Not Later


January often arrives fast and noisy. A bit of prep before year-end can make the transition significantly smoother.


Key tasks typically include:


  • Building next year’s indirect cost pools

  • Rolling forward the General Ledger and Project Ledger

  • Updating organizational structures, departments, or labor categories

  • Reviewing budgets and validating labor and fringe rates for the new year

  • Beginning early preparation for W-2s and 1099s


Future-you will be very grateful for this early planning.


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5. The Leave-Year Close: A Small Step That Matters A Lot


Leave processing has its own rules, and missing one step can create a domino effect that’s painful to unwind.


A few reminders:


  • The leave-year close is permanent

  • Don’t post timesheets dated after the final leave period

  • Ensure all accruals and timesheets are fully processed before closing

  • Confirm the final leave period in your system

  • Watch for Deltek’s year-end guidance in December


If this step feels high-stakes, that’s because it is. It’s one of the most common places GovCon teams get tripped up each January.



6. Bonus Items That Make Next Year Even Easier


These aren’t mandatory, but they add meaningful value:


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  • Review contract funding, modifications, and lingering closeout actions

  • Revisit unallowable-cost coding to ensure accuracy

  • Clean up your chart of accounts and retire unused accounts

  • Gather documentation needed for financial or DCAA audits

  • Assess what internal processes slowed you down this year – and adjust before the cycle repeats



A small investment now often prevents much larger problems down the road.



Final Thoughts


Year-end doesn’t have to be overwhelming. With a thoughtful, proactive approach, GovCon organizations can shift from “rushing to catch up” to “closing with clarity.” Whether you’re focused on compliance, accuracy, or simply reducing stress, these steps help you finish the year with confidence and set the stage for a stronger, smoother 2026.

 

If you’re realizing that a little guidance could make year-end smoother, CRI is here for you. We specialize in helping GovCon teams close the books cleanly and confidently, without the usual stress.



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