Small Business Tax Prep & Readiness Report

What a good one includes

• A clear summary of reconciled accounts showing exactly which bank and credit card statements are matched through the tax year-end date.
• A categorized checklist of required tax documents, distinguishing between what has already been gathered and what is still outstanding.
• A preliminary Profit and Loss draft highlighting potential anomalies or unusually high expense categories that need manual verification.
• A dedicated section for potential write-offs and deductions, such as home office calculations, vehicle mileage logs, and business travel receipts.
• An inventory and asset depreciation schedule tracking any major equipment purchases or disposals made during the tax year.
• A chronological timeline of upcoming federal, state, and local filing deadlines specific to your business entity structure.

Common mistakes to avoid

• Waiting until the final weeks of the tax season to begin compiling the report, which leaves no time to track down missing receipts or correct bookkeeping errors.
• Failing to separate personal and business expenses, resulting in messy commingled accounts that require tedious manual sorting by your accountant.
• Neglecting to update your business entity status or state registrations, leading to filing under the wrong tax forms or missing regional requirements.
• Overlooking 1099 contractor reporting requirements, which can result in penalties if worker information isn't verified before filing deadlines.

Frequently asked questions