The months before year-end are when many tax decisions can still be made. A short review in November or December can prevent errors, avoid missed deadlines, and give you time to make informed choices.
Get your records current
- Reconcile bank and credit card accounts through the latest month.
- Categorize transactions and clear any uncategorized items.
- Review accounts receivable and payable for accuracy.
- Confirm that personal expenses have not been mixed into business accounts.
Review your income and estimated payments
- Estimate your year’s taxable income to understand where you stand.
- Check whether your estimated payments are on track, and note the final federal estimated payment, generally due in mid-January.
- Consider how timing of income and expenses may affect the year, with guidance on what is appropriate for your situation.
Payroll and contractors
- Make sure you have a W-9 for every contractor you paid.
- Identify who must receive a 1099 and gather the information required.
- Prepare for W-2 and 1099-NEC filing, which are generally due to recipients and the IRS by the end of January.
- Confirm payroll tax deposits and filings are current.
Equipment and asset purchases
- List assets purchased or sold during the year.
- Keep invoices and the date each asset was placed in service.
- Discuss with your advisor how purchases may be treated for tax purposes before making year-end decisions.
Retirement and benefits
- Review your retirement plan contributions and deadlines.
- Confirm owner health insurance and other benefit treatments are being reported correctly.
Entity and state matters
- Confirm your entity is in good standing and annual state filings are on your calendar.
- Review state and local tax obligations, including franchise and sales and use taxes where they apply.
Gather documents for your preparer
Having a clean profit and loss statement, balance sheet, payroll reports, and asset list ready in January saves time and money. See our Resources page for a full checklist.
If you would like a year-end review, contact us to schedule a consultation.
General information only. This article is educational and is not tax, legal, or financial advice. Tax rules change and outcomes depend on your individual facts. Please consult a qualified professional about your situation.