Tax Time Checklist for your Business
Tax season doesn't have to be stressful if you are prepared. Having an organized system and a clear checklist will help ensure you file accurately and take advantage of all available deductions.
Documents to Gather:
- Income and sales records, including invoices, sales reports and deposit slips
- Expense receipts, bills and credit card statements
- Payroll records, including W-2s for employees and payroll tax filings
- 1099 forms for contractors you paid during the year
- Bank and credit card statements for reconciliation
- Loan documents and interest statements
- Prior year tax returns for reference
Steps to Prepare the Return:
This section can be done by your tax professional
- Reconcile your bank accounts, credit cards and accounting software to ensure records match
- This should ideally be done on a regular basis throughout the year so you maintain good records
- Review and categorize all expenses to identify potential deductions such as home office, vehicle use, supplies, utilities and professional services
- Calculate depreciation on business assets and confirm any Section 179 deductions taken during the year
- Double-check payroll tax filings to ensure accurate reporting
- File federal, state and local tax forms by the deadlines or request extensions if necessary
- Pay any taxes due or arrange for payment plans if you cannot pay in full
- Back up all digital records and organize paper documents for easy retrieval if needed later
Planning for Next Year:
- Review your estimated tax payments to adjust for changes in income
- Confirm you have a good system in place to track income and expenses consistently each month
- Consider scheduling a meeting with your accountant to plan tax-saving strategies for the upcoming year
- Explore retirement contributions, health savings accounts and other opportunities to reduce taxable income
Final Thought:
Staying organized and following a clear checklist makes tax season smoother, reduces stress and ensures your business remains compliant while taking full advantage of deductions.
