Year-End Tax Prep Guide for Business Owners

1) Confirm Your Year-to-Date Income

• Pull a year-to-date profit & loss report (or bank deposit summary if books aren’t finalized).
• Compare actual income to expectations you had earlier in the year.
• Identify one-time income events (launches, bonuses, large projects).
• Confirm all income sources are included (platforms, affiliates, 1099s, side income).

Knowing your true income range is the foundation of every year-end tax decision.

2) Clean Up Expenses & Deductions

• Review uncategorized or miscategorized expenses.
• Confirm receipts are saved for large or questionable purchases.
• Check software, subscriptions, and tools for consistency.
• Home office & vehicle review: confirm method and documentation.

Cleaning this up now prevents lost deductions and rushed decisions later.

3) Estimated Tax & Cash Flow Check

• Confirm total estimated tax payments made (federal + state).
• Compare payments to actual income — underpaying is common.
• Plan final payments so cash isn’t a surprise in January.

Many penalties are avoidable — but only if you address gaps before year-end.

4) Identify Last-Minute Planning Opportunities

• Timing expenses: Are there legitimate business expenses you were already planning?
• Retirement contributions: Review eligibility and limits.
• Entity considerations: Is your structure still appropriate given profits?
• Deferred income decisions: If applicable, note timing questions.

These decisions should be intentional — not reactive.

5) Crypto & Digital Asset Review (If Applicable)

Crypto cleanup is significantly harder after the year closes — early prep matters.

6) When to Get Professional Help

• You’re unsure what you’ll owe.
• Your income increased significantly.
• Your books are behind or inconsistent.
• You added contractors, payroll, or multi-state activity.
• You have crypto activity without clean exports.