Tax Season Prep Checklist for Small Business Owners
Get ahead of tax season with this practical checklist covering what to gather, reconcile and review before handing things off to your tax preparer.
Reconcile All Accounts
Before tax season, every bank account, credit card and loan account should be reconciled through December 31st. Unreconciled accounts are the most common cause of tax prep delays.
Review Your Chart of Accounts
Make sure transactions are categorized correctly. Miscategorized expenses can mean missed deductions or, worse, red flags on an audit.
Gather 1099 Information
If you paid any contractors $600 or more during the year, you'll need their W-9 information to issue 1099s by the January deadline.
Reconcile Payroll Records
Make sure your payroll platform totals match what's recorded in your books — including employer tax contributions and benefits.
Review Outstanding Invoices and Bills
Clean up your AR and AP aging reports. Write off truly uncollectible invoices and ensure all vendor bills are recorded in the correct period.
Organize Receipts for Major Purchases
Equipment purchases, vehicle expenses and large one-time costs should have documentation ready in case your accountant has questions about depreciation or classification.
Common Documents Your Tax Preparer Will Need
Beyond your financial statements, be ready to provide: prior year tax return, business license information, vehicle mileage logs if applicable, home office square footage (if claiming that deduction), and any business loan or asset purchase documentation from the year.
Quarterly Estimated Tax Payments
If your business pays quarterly estimated taxes, year-end is a good time to review whether your Q4 payment (typically due mid-January) is calculated correctly based on your actual full-year results, not just an estimate from earlier in the year.
Building a Tax Season Calendar for Next Year
Once this tax season is behind you, set calendar reminders for next year's key dates — quarterly estimate due dates, 1099/W-2 deadlines (January 31), and a target date for having books closed (early January) so the cycle gets easier each year rather than harder.
