What Info & Documentation Do Small Businesses Need For Their Taxes?
Tax season is stressful enough for individuals. But small businesses have to contend with a separate set of complicated forms and policies. For new and seasoned business owners alike, it can be frustrating to look at your tax documents and wonder if you’ve forgotten something.
But with just a little prep work, you can save yourself time, money, and a whole lot of headaches. Whether you file your business’s taxes on your own or hire a licensed professional, this checklist will ensure you have everything you need.
Keep in mind that every business is different. This checklist covers the common forms and information, but your particular business might require additional prep work.
Income
- Gross receipts from sales or services
- Sales records (for accrual-based taxpayers)
- Returns and allowances
- Business checking/savings account interest (1099-INT or statement)
- Any other income
Cost of Goods Sold (if applicable)
- Inventory
- Beginning inventory — total dollar amount
- Inventory purchases
- Ending inventory — total dollar amount
- Items removed for personal purposes
- Cost of materials & supplies
Expenses
- Advertising
- Phones (landline, fax, or cell phones related to business)
- Computer & internet expenses
- Transportation and travel expenses
- Local transportation
- Business trip (mileage) log
- Contemporaneous log or receipts for public transportation, parking, and tolls
- Travel away from home
- Airfare or vehicle mileage
- Hotel
- Meals, tips
- Taxi, tips
- Internet connection (hotel, coffee shop etc.)
- Other
- Local transportation
- Commissions paid to subcontractors
- File Form 1099-MISC and Form 1096 as necessary
- Depreciation
- Cost and first date of business use of assets
- Records relating to personal use of assets
- Sales price and disposition date of any assets sold
- Business insurance
- Casualty loss insurance
- Errors and omissions
- Other
- Interest expense
- Mortgage interest on building owned by business
- Business loan interest
- Investment expense and interest
- Professional fees
- Lawyers, accountants, and consultants
- Office supplies
- Pens, paper, staples, and other consumables
- Rent expense
- Office space rent
- Business-use vehicle lease expense
- Other
- Office-in-home
- Square footage of office space
- Total square footage of home
- Hours of use, if operating an in home daycare
- Mortgage interest or rent paid
- Homeowner’s or renters’ insurance
- Utilities
- Cost of home, separate improvements and first date of business use
- Wages paid to employees
- Forms W-2 and W-3
- Federal and state payroll returns (Form 940, Form 941, etc.)
- Employee benefit expenses [This needs to be left-aligned with “Wages paid to employees”]
- Contractors
- Form 1099-MISC
- Form 1096
- Other expenses
- Repairs, maintenance of office facility, etc
- Estimated tax payments made
- Other business related expenses
- Health insurance [This needs to be left-aligned with “Other expenses”]
- Premiums paid to cover the sole-proprietor and family
- Premiums paid on behalf of partners and S corporation shareholders
- Information on spouse’s employer provided insurance
Complete Your Small Business Tax Prep With Boxelder Consulting
Now that you’ve run down the tax checklist for small businesses, you have everything you need to file your taxes. You can either do them on your own or hire a tax pro to ensure that you’re minimizing your tax bill.
At Boxelder, our team of licensed tax professionals can evaluate your options, no matter your tax situation. We’ll guide you through any challenges that develop, helping you take advantage of all possible credits and deductions.
Our team is here to minimize your tax liability, so that you can keep more of your hard-earned money. Talk to a Boxelder CPA today and we’ll complete your small business tax preparation accurately and on time.