Tax season can present challenges for businesses that are not adequately prepared. Late filings, inaccurate records, and missed deductions often result from poor documentation and lack of planning. This checklist outlines the steps business owners should take to streamline the process and minimize risk.
1. Organize Financial Records
Ensure all records for the tax year are accessible, accurate, and categorized. This includes:
- Profit and Loss Statements
- Balance Sheets
- Payroll reports
- Receipts for expenses
- Invoices and accounts receivable reports
Working with a CPA such as Ash CPA can help review these documents for completeness before submission.
2. Verify Expense Deductions
Common deductible business expenses include:
- Office rent and utilities
- Software subscriptions
- Travel and mileage
- Professional services
- Advertising and marketing
A professional accountant can identify additional deductions that may be industry-specific or underutilized. Henry Kulik CPA specializes in strategic tax planning that minimizes liability.
3. Prepare Estimated Tax Records
Businesses that make quarterly estimated tax payments should reconcile those payments with actual income. Documentation should include:
- Dates and amounts of estimated payments
- Proof of submission
- IRS confirmations, if applicable
These records ensure correct reporting and prevent duplicate payments.
4. Update Payroll and Contractor Reports
Businesses with employees or contractors must file appropriate forms, such as:
- W-2s for employees
- 1099s for contractors
- Payroll tax summaries (Form 941, FUTA reports)
Having accurate year-end payroll reports is essential to avoid IRS penalties.
5. Conduct a Final Year-End Review
Before filing, conduct a year-end review with your CPA to:
- Evaluate tax-saving opportunities
- Check for compliance issues
- Strategize for the upcoming tax year
Professionals at Ash CPA and Henry Kulik CPA provide structured year-end review sessions to help businesses identify gaps and plan proactively.
