Small Business Tax Season Checklist

Tax season for a small business involves far more than just handing over your bank statements. The businesses that make it through without a scramble are the ones that keep their books organized all year and run through a structured checklist before handing anything to their CPA. Here's the complete list — organized by category so you can work through it systematically.

Step 1: Close Your Books for the Year

Before gathering documents, make sure your accounting records are complete and accurate for the tax year:

• Reconcile every bank and credit card account through December 31
• Categorize all uncategorized transactions from the year
• Post any missing invoices or bills (especially ones paid in January for December work)
• Review accounts receivable — confirm all outstanding invoices are accurate
• Review accounts payable — confirm all outstanding bills are in the system
• Make sure payroll for the last pay period of the year is fully posted
• Verify your beginning and ending inventory counts match the books (if applicable)

Step 2: Income Documentation

• Export a Profit & Loss statement for the full year from your accounting software
• Gather all 1099-NEC forms received (from clients who paid you over $600)
• Verify your total 1099 income matches what's recorded in your books
• Pull reports for any cash income received that may not have hit your bank
• Note any income that should be deferred (deposits received for work not yet delivered)

Step 3: Expense Documentation

• Download a categorized expense report from your accounting software
• Confirm that major expense categories (office, travel, professional fees) match receipts
• Gather home office documentation: square footage of office vs. total home, if applicable
• Mileage log for any business vehicle use (date, destination, business purpose, miles)
• Meals receipts with business purpose noted — these must be documented to be deductible
• Any subscriptions or software payments that may have been made on personal cards and not recorded
• Records of charitable contributions made by the business

Step 4: Payroll & 1099s (If You Have Employees or Contractors)

• Confirm W-2s have been filed for all employees (due January 31)
• Confirm 1099-NECs have been filed for all contractors paid over $600 (due January 31)
• Pull your annual payroll summary — total wages, payroll taxes, and employer contributions
• Verify payroll tax deposits are reconciled to what was withheld
• Gather any workers' compensation premium statements for the year

Step 5: Assets, Depreciation & Capital Items

• List any equipment, computers, or vehicles purchased during the year (over $2,500)
• List any assets sold or disposed of during the year and their original purchase price
• Pull your depreciation schedule from prior years to confirm continuing deductions
• Note any bonus depreciation or Section 179 elections you'd like to make
• Pull mortgage interest statements (Form 1098) for any business real estate

Step 6: Balance Sheet Items

• Confirm your loan balances match year-end bank or lender statements
• Check that accounts receivable and payable match your accounting system
• Pull year-end inventory counts if you carry physical inventory
• Note any prepaid expenses (insurance, subscriptions) that span years
• Document any loans from or to owners or related parties

Step 7: What to Hand Your CPA

• Full-year Profit & Loss statement (accrual or cash — ask your CPA which they need)
• Balance Sheet as of December 31
• Bank reconciliation reports for all accounts
• The checklist items above — organized by section, not dumped into a folder
• Prior-year tax return (for reference on depreciation schedules and carryforward items)
• A brief summary of anything unusual — large one-time expenses, new loans, ownership changes, new states where you had nexus

Key Deadlines to Know

For most small businesses (sole proprietors and S-Corps): the personal return and pass-through income is due April 15, with an October 15 extension available. C-Corps file separately on April 15 (or the 15th of the 4th month after their fiscal year). Partnerships and S-Corps file on March 15. If you're not sure which entity type you are or which deadline applies, ask your CPA — getting the filing type wrong has consequences beyond just the deadline.