How to Prepare for Tax Season: A Small Business Checklist

Written By DJ Thomas

Tax season can be overwhelming for small business owners, but with the right preparation, you can streamline the process and avoid last-minute stress. Whether you're filing on your own or working with a CPA, staying organized throughout the year makes tax time much easier. Follow this checklist to ensure a smooth and hassle-free filing.

1. Gather Your Financial Records

Having all of your financial documents in order is the first step in preparing for tax season. Make sure you have:

  • Income Statements: Profit and loss statements or other income records.

  • Expense Receipts: Documentation for business expenses such as office supplies, travel, and advertising.

  • Bank and Credit Card Statements: Records that help verify income and expenses.

  • Payroll Reports: W-2s and 1099s for employees and contractors.

  • Sales Tax Records: If applicable, make sure you have your sales tax reports.

Keeping digital copies of receipts and statements in accounting software or cloud storage can make tax time much more efficient.

2. Review Your Business Deductions

Maximizing deductions is key to lowering your tax liability. Common small business deductions include:

  • Home office expenses

  • Business travel and mileage

  • Office supplies and equipment

  • Marketing and advertising costs

  • Retirement contributions

Not sure what deductions you qualify for? A CPA can help you identify eligible expenses and ensure compliance with IRS rules.

3. Check Estimated Tax Payments

If you are self-employed or own a business, you may need to pay estimated taxes quarterly. These payments help cover income tax and self-employment tax. If you missed any payments or underpaid, be prepared to pay the remaining balance when filing your return.

To avoid penalties in the future, work with a CPA to calculate your estimated taxes accurately and set up a payment schedule.

4. Issue Forms for Employees and Contractors

If you have employees or independent contractors, you must issue the appropriate tax forms:

  • W-2 Forms – For employees, due by January 31.

  • 1099-NEC Forms – For contractors earning more than $600, also due by January 31.

Make sure all payroll records are accurate before sending these forms to avoid IRS penalties.

5. Organize Your Tax Documents

Before filing, make sure you have all necessary tax forms and reports, including:

  • Previous year’s tax return (for reference)

  • Business EIN or SSN (depending on your business structure)

  • Receipts for deductible expenses

  • Bank statements and financial reports

Working with an experienced CPA can help ensure you file correctly and maximize deductions while staying compliant with tax laws.

6. File On Time (or Request an Extension)

For most small businesses, the tax filing deadline is April 15. If you need more time, you can request an extension, but keep in mind that any taxes owed must still be paid by the deadline to avoid penalties.

Filing early not only reduces stress but also helps you avoid potential processing delays with the IRS.

Final Thoughts

Tax season doesn’t have to be overwhelming. By staying organized, tracking expenses, and working with a CPA, you can minimize your tax liability and ensure a smooth filing process.

If you need assistance preparing your business taxes, ASKCPA is here to help. Contact us today to schedule a consultation and take the stress out of tax season.

DJ Thomas https://REDWOLFMEDIA.CO
Next

5 Essential Tax Deductions Every Small Business Should Know