Tax season is rarely anyone’s favorite time of year, but being prepared can make it a whole lot easier. For small business owners and managers of larger operations alike, having the right paperwork in place means fewer headaches, less last-minute scrambling, and a smoother process for everyone involved. The last thing you want is to miss out on deductions or face penalties because a key document slipped through the cracks.
We’ve put together a checklist of the essential documents and information you’ll need for tax return preparation. This list will help you stay organized, avoid common pitfalls, and get the most out of your return.
| QUICK CHECKLIST DOCUMENTS AND INFO NEEDED FOR TAX RETURN PREPARATION 1. Business changes 2. New W9s 3. 1099s and 1099-Ks 4. Year-end totals 5. Health and life insurance 6. Loan statements 7. Outstanding checks 8. Business expenses paid by an individual 9. Fixed assets 10. New states and employees 11. 1098 forms 12. Personal life changes 13. Expense list for tangible returns |
1. Business changes
Did your company add or remove partners or shareholders this year? Changes like these can affect your taxes, so it’s important to document them clearly. For example, if you brought on a new partner in July, make sure you have all of his or her relevant info.
2. New W9s
Have you collected W9s from all new vendors? A missing W9 can delay filings or cause issues with 1099 reporting. When you hire new contractors, request their W9s as part of the onboarding process.
3. 1099s and 1099-Ks
If you received any 1099s or 1099-Ks, put them in your folder of tax documents. These forms cover income from freelance work, contract jobs, or payment processors like PayPal. For instance, if you sold products online on Etsy, you might get a 1099-K from your payment platform.
Click here to learn more about our 1099 preparation services.
4. Year-end totals
Record the value of your petty cash, inventory, and cash registers as of December 31st.
10 essential steps to prepare your business for year-end
5. Health and life insurance
Did your business pay for health or life insurance for owners? Whether it’s personal or company-sponsored, these payments matter for deductions.
6. Loan statements
If applicable, send statements for business loans. These can impact your deductions and interest calculations. Even a small equipment loan can make a difference.
7. Outstanding checks
Got checks that haven’t cleared yet? Confirm whether they’re still valid. If not, reverse them before year-end to keep your records clean.
8. Business expenses paid by an individual
Did you pay for any business items out of your own pocket? Maybe you bought office supplies with your personal credit card. If the business hasn’t reimbursed these, include a list or statements with notes to avoid missing deductions.
9. Fixed assets
Have you added or disposed of any fixed assets this year? If you bought a new piece of machinery or sold an old truck, your depreciation schedule will be affected.
10. New states and employees
If you expanded to new states or hired employees in different locations, let your accountant know. Operating in certain states can trigger new registration requirements or tax obligations.
11. 1098 Forms
Provide copies of any 1098s you receive. These forms report mortgage interest or student loan interest, which can be valuable for deductions.
12. Personal life changes
Did you get married, divorced, or have a baby this year? Life changes like these can affect your filing status and credits.
13. Expense list for tangible return
Finally, send a list of expensed items for your tangible return. The list should include things like office furniture, computers, or equipment purchases—anything physical you’ve written off.
If you have any questions, please reach out. We’re here to help you get through tax season without the hassle.
You may also be interested in: Tax Planning Checklist: Essential questions to discuss with your advisor before year-end