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Small Business Tax Preparation Checklist

Preparing the tax returns for your small business may be something you love to avoid but it’s definitely something you can’t run away from forever. As a business owner, you are mandated by law to file and pay your taxes each year, and having a small business tax preparation checklist makes it all easier for you.

A small business tax preparation checklist is essential for your business because it helps you with financial strategy, tax organization, and planning. If you’re a small business owner, you need this;

A Small Business Tax Preparation Checklist for You

  1. Income Records:

Get all of your income records together. If you receive a 1099 or multiple 1099s, you’ll need all of them. If you sell a product directly to customers then you’ll need sales records and receipts. If you own any other kind of income from another source, you’ll need a record of that as well.


  1. Inventory:

If you have inventory, you’ll want to know the following

  1. a) How much you currently have
  2. b) Any recent inventory purchases
  3. c) Any items that were purchased from inventory for personal use.


  1. Receipts and Records for your expenses:

Depending on your type of business, you could have a whole range of expenses. You might have personnel expenses, operational expenses, legal expenses, and so on. but to keep it simple, begin with basic things like office supplies. Your lists of receipts should comprise both serious ones like a computer and simple ones like papers and ink. If you spent money on advertising or hosting clients, those are expenses that you’d want to deduct as well.


  1. Decide if you need a filing extension:

If you get caught up in other daily activities that prevent you from filing your tax returns, then requesting a filing extension may be the best option available to you in that situation. Instead of filing a questionable tax return, you can simply ask the IRS to give you more time.


  1. Talk to your bookkeeper and research for alternatives if you can not pay your tax liability:

If you cannot afford to pay your tax liability in one lump sum, then sit down with your bookkeeper to discuss other viable options. You can ask the IRS for a monthly installment agreement, an offer in compromise, or a temporary delay until your financial situation is sorted out. An experienced tax consultant is, of course, in a better position to negotiate these agreements on your behalf. Reach out to our team of certified experts now at  888-585-8629 or 617-430-4674 or send us an email at


What do I need to give my accountant for Small Business Taxes?

Accounting and taxes are usually noted as two the most excruciating parts of doing business, thus, most small business owners hire an accountant to help them out with finances. More so due to the changes in federal tax laws, state tax laws, and small business deductions, small business owners may just not be able to keep up by themselves.

Hiring a tax professional is a great idea as it gives you time to concentrate on other things while your tax issues are being sorted out for you.

To complete your tax return, your accountant will need the following documents from you;

  1. Your previous year’s tax returns

Your accountant will need a copy of your federal, state, or local tax returns. These will contain most of the information that your accountant needs to file your taxes, such as your name, ID, state, local payroll taxes, and more.


  1. Your tax forms

The tax forms for all your employees and contractors will have to be filed. You will have to file a Form W-2 for each of your employees (if any).


  1. All financial records

You will need to provide the necessary financial information like your income statements, business transactions, and deductions. This will communicate the health of the business to the IRS and they will know how it should be approached.

  1. Home office expenses

If you use a part of your home as your office, you can claim home office expenses. To do this your home must be the principal place for business and the portion of your home you plan to deduct must be used exclusively for business purposes.

On a final note, the type of taxes you will be required to pay, how and when you will be expected to pay them all depends on the type of business entity that you operate.

Do you need professional assistance with the filing of your small business tax returns? Then do not hesitate to reach out to us now for immediate assistance.

About us

We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at

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Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.