Tax season is easier when your records are ready before you or your accountant start the return. Use this checklist to gather what you need and avoid last-minute delays.
1. Income Records
- Sales and revenue reports: From your accounting software, POS, or online store.
- 1099-NEC and 1099-K forms: Forms received from clients and payment platforms.
- Bank statements: For every business account, for the full year.
2. Expense Records
- Receipts and invoices: For purchases, subscriptions, travel, and supplies.
- Vehicle and home office records: Mileage logs and home office measurements, if you claim them.
- Asset purchases: Invoices for equipment and other assets bought during the year.
3. Payroll and Contractor Records
Have your W-2s, 1099s issued, and quarterly payroll filings ready. If payroll takes too much time, outsourced payroll support can keep these records current all year.
4. Prior Returns and Notices
Keep last year's return, any IRS or state notices, and records of estimated tax payments made during the year.
5. Reconciled Books
Reconcile every bank and credit card account and review your profit and loss statement before filing. Clean books make tax preparation faster and reduce the risk of errors.
FAQs: Small Business Tax Preparation
- When should I start preparing my business taxes?
- Start gathering documents at the beginning of the year, as soon as year-end statements and forms arrive, and keep your books reconciled monthly.
- What if I'm missing receipts?
- Use bank and card statements to rebuild the record, and ask vendors for copies. Talk to your accountant about how to handle anything you can't document.
- Do I need an accountant to file business taxes?
- Not always, but an accountant or CPA can help you claim the right deductions, stay compliant, and plan ahead, especially as your business grows.
Final Thoughts
Working through this checklist a few weeks before your deadline gives you time to find missing documents and plan with your accountant, instead of rushing at the end.