Preparing for Tax Season: A Small Business Owner's Checklist
Tax season doesn't have to be stressful. With proper preparation and organized records, you can streamline the process and potentially maximize your deductions.
Tax season can be overwhelming for small business owners, but it doesn't have to be. With proper preparation throughout the year and a systematic approach, you can make the process smooth and potentially save money through proper deductions. This comprehensive checklist will help ensure you're ready when it's time to file.
📅 Important Tax Season Dates for 2026
March 17, 2026: Partnership and S-Corp returns due (Form 1065, 1120S)
April 15, 2026: Individual and C-Corp returns due (Form 1040, 1120)
January 31, 2026: 1099s and W-2s due to recipients
February 28, 2026: 1099s due to IRS (March 31 if filing electronically)
Financial Records Checklist
✅ Income Documentation
- All 1099s received: 1099-NEC (non-employee compensation), 1099-MISC, 1099-K (payment processing)
- Sales records: Complete sales summaries from your accounting software
- Payment processor statements: PayPal, Stripe, Square, etc.
- Bank deposit records: All business bank statements showing deposits
- Cash transactions: Documentation for any cash sales
✅ Business Expense Documentation
Office & Equipment
- □ Office supplies and materials
- □ Computer and equipment purchases
- □ Software subscriptions
- □ Office rent or home office expenses
- □ Utilities (if home office)
Business Operations
- □ Professional services (legal, accounting)
- □ Insurance premiums
- □ Marketing and advertising
- □ Business licenses and permits
- □ Professional development and training
Travel & Transportation
- □ Mileage logs for business travel
- □ Business meal receipts (50% deductible)
- □ Hotel and accommodation receipts
- □ Conference and event expenses
- □ Vehicle expenses (if not using mileage)
Employee Related
- □ Payroll summaries and tax deposits
- □ Contractor payments (1099s issued)
- □ Employee benefits costs
- □ Workers' compensation insurance
- □ Retirement plan contributions
💡 Pro Tip: The Receipt Rule
Keep receipts for any business expense over $75. For smaller amounts, a credit card or bank statement may suffice, but receipts provide better documentation and help you remember the business purpose.
QuickBooks Preparation Steps
Complete Year-End Reconciliation
Reconcile all bank accounts, credit cards, and loan accounts through December 31st.
Review and Categorize All Transactions
Ensure every transaction is properly categorized with the correct account and class (if applicable).
Run Tax Reports
Generate the reports your tax preparer needs, including profit & loss, balance sheet, and detailed transaction reports.
Prepare 1099s for Contractors
If you paid contractors $600 or more during the year, you must issue 1099-NEC forms by January 31st.
Common Deductions Small Businesses Miss
Don't leave money on the table. Here are commonly overlooked deductions that could reduce your tax liability:
🏠 Home Office Deduction
If you use part of your home exclusively for business, you may qualify for the home office deduction.
🚗 Vehicle Expenses
Business use of your vehicle is deductible using either mileage or actual expense method.
📱 Cell Phone & Internet
The business percentage of your phone and internet bills is deductible.
🎓 Education & Training
Courses, books, and conferences that improve your business skills are deductible.
Questions to Ask Your Tax Preparer
- • Should I be making quarterly estimated tax payments next year?
- • Are there any business expenses I should track differently?
- • Would changing my business entity type save on taxes?
- • What retirement planning options could reduce my tax liability?
- • Are there any tax law changes affecting my business this year?
- • Should I consider any year-end tax planning strategies for next year?
Year-Round Tax Preparation Tips
The best tax preparation happens all year long. Here's how to stay organized:
Monthly reconciliation: Keep your books current with monthly bank reconciliations and transaction reviews.
Digital receipt storage: Use apps like Expensify or Receipt Bank to capture receipts immediately.
Mileage tracking: Use apps like MileIQ or manually log business trips as they happen.
Quarterly reviews: Meet with your bookkeeper or accountant quarterly to stay on track.
⚠️ Important Reminders
- • Keep records for at least 3 years (7 years for certain situations)
- • Backup your QuickBooks data before tax season
- • Don't wait until the last minute—start gathering documents in January
- • Consider filing an extension if you need more time to prepare properly
Let Us Handle Your Tax Preparation
Stop stressing about tax season. Our team ensures your books are always audit-ready and tax-prepared, so you can focus on growing your business instead of organizing receipts.
