Tax Season Prep: A Simple Checklist for Small Business Owners
Businesses that glide through tax season all do the same thing: they show up to their CPA with organized records instead of a pile of “somewhere in my email.” One note up front: this is general preparation guidance, not tax advice — your CPA is the authority on your specific situation.
1. Get the books current and reconciled
Every month of the year categorized, every bank and credit card account reconciled through December 31. This is the foundation — everything else on this list is easy if the books are clean, and impossible if they aren't. If you're behind, start now; cleanup takes longer than you think, and bookkeepers' calendars fill fast after January.
2. Run the three core reports
Year-end Profit & Loss, Balance Sheet as of December 31, and a general ledger export if your CPA wants detail. If any number on the P&L makes you say “that can't be right” — investigate before your CPA has to.
3. Round up the source documents
Bank and credit card statements for December (your CPA may want the full year), loan statements showing year-end balances and interest paid, payroll reports if you have employees, and records for any large asset purchases — vehicles, equipment, property — since those are handled differently than regular expenses.
4. Handle your 1099 obligations
If you paid any contractor $600 or more during the year, you likely owe them a 1099-NEC by January 31. Now is the moment to confirm you have a W-9 on file for each one. Missing W-9s are the classic January fire drill — collect them in December instead.
5. Gather the easy-to-forget items
Home office details (square footage, utilities) if you claim it, business mileage logs, health insurance premiums if self-employed, and estimated tax payments you made during the year — your CPA needs the dates and amounts to credit them properly.
6. Flag the weird stuff proactively
New loan? Sold equipment? Changed entity type? Took on a partner? Started a second revenue stream? Write a short list of anything unusual and hand it over unprompted. CPAs universally prefer a heads-up in January to a surprise in April.
7. Book your CPA early
The best tax professionals fill their calendars fast. Reaching out in January instead of March gets you more attention and less rush.
The pattern worth noticing
Items 1 through 3 aren't really “tax prep” at all — they're just what current, well-kept books look like every month. Clients on monthly bookkeeping start this checklist 80% done, which is exactly why their tax seasons are boring.
If you'd like boring tax seasons too, that's our specialty. Book a free consultation — and if you're not sure where your books stand, grab the free checklist: 10 Signs Your Books Need Attention.