Bookkeeping Tasks to Prep for Tax Season

Tax season is creeping up (again!), and if you’re like most small business owners, it probably feels like it gets here faster every year. But don’t worry—I’ve got you covered with some small business bookkeeping tips to help you prepare for tax season without breaking a sweat.

Here’s a step-by-step tax season checklist to make sure your books are tax-ready—and maybe even save you some money!

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1. Reconcile Your Accounts

One of the first bookkeeping tasks for tax preparation is reconciling your accounts. This involves ensuring your bank and credit card records match your bookkeeping software. Tools like QuickBooks or Xero make reconciling a breeze, helping you catch missing transactions or duplicates before they become a headache.

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2. Organize Your Receipts

Receipts are the backbone of small business tax preparation. Whether you’ve gone digital with apps like Hubdoc or still have paper receipts, now’s the time to organize them. Proper record-keeping ensures you’re ready to back up your deductions if the IRS comes knocking.

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3. Review Your Categorization

Accurate expense categorization is critical during year-end financial tasks. Did that coffee meeting with a client get logged as a business meal? Did your new office chair make it into the right category? Review your transactions to ensure they’re correctly labeled—it could mean bigger deductions for your business.

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4. Double-Check Payroll Records

If you have employees or contractors, verifying payroll is essential. Make sure W-2s and 1099s are accurate and ready to go. This step is often overlooked, but it’s a vital part of organizing business finances for tax season.

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5. Prepare Financial Statements

Your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement are the holy trinity of tax documents. These reports summarize your financial performance and are key to small business tax preparation. Not sure where to start? A professional bookkeeper can help!

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6. Set Aside Tax Payments

For self-employed individuals or small business owners paying quarterly taxes, now’s the time to double-check your tax payments. It’s better to catch any shortfalls now than face surprises later. Setting aside funds is a core part of bookkeeping for tax season.

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7. Consult Your Accountant or Bookkeeper

Tax laws change, and even the savviest entrepreneurs can miss something. Whether you’re tackling taxes on your own or working with a professional, consulting your accountant or bookkeeper ensures no deduction is left behind.

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Why Small Business Bookkeeping Matters for Tax Season

Being proactive about your year-end bookkeeping tasks doesn’t just save you time—it can save you money, too. By staying organized and preparing in advance, you’ll reduce stress and set yourself up for financial success.

Need help checking off your tax season checklist? I’m here to help! From reconciling accounts to preparing your financial statements, I make tax-ready bookkeeping simple and stress-free. Let’s chat and make tax season the easiest one yet!

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