The start of the year is a great time to ensure your business is financially organized. Preparing for tax season doesn’t have to be overwhelming if you take it step by step. This Q1 Tax Prep Checklist will guide you through organizing your documents, understanding deadlines, and ensuring you’re maximizing deductions.
Step 1: Gather All Necessary Documents
To begin, make sure you have the following items ready:
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Income Records: Include invoices, sales records, and any 1099 forms you’ve received.
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Expense Records: Organize receipts for business purchases, operational costs, and utility bills.
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Financial Statements: Bank statements and credit card statements are critical for verifying expenses.
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Employee/Contractor Documentation: Collect W-2s, 1099s, and payroll records if applicable.
Pro Tip: Use an expense tracking tool or software to stay on top of your records year-round.
Step 2: Organize Your Records
Keeping everything in order saves you time and stress:
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Sort By Category: Separate income, expenses, and deductions into folders or labeled files.
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Digital Backups: Scan paper receipts and save digital copies in a secure cloud storage system.
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Mileage Logs: If you use a personal vehicle for business purposes, ensure your mileage log is up to date.
Pro Tip: Use tools like QuickBooks, Xero, or Wave to automate expense tracking and financial organization.
Step 3: Know Your Key Deadlines
Mark these important Q1 tax deadlines on your calendar:
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January 15: Estimated tax payments for Q4 2024 are due.
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February 1: Deadline to issue 1099-NEC and W-2 forms to contractors and employees.
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March 15: Deadline for S-Corp and partnership tax returns.
Pro Tip: Double-check your deadlines with a tax professional to avoid penalties.
Step 4: Maximize Deductions
Don’t leave money on the table! Common deductions for small businesses include:
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Home office expenses.
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Marketing and advertising costs.
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Business travel and meals.
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Equipment and software purchases.
Pro Tip: Work with a tax advisor to identify industry-specific deductions you might qualify for.
Step 5: Consult with a Tax Professional
Tax laws can be complex and vary by state. Consulting a professional ensures accuracy and helps you uncover opportunities to save. Many CDFIs and community organizations also offer free or low-cost tax preparation resources for small business owners.
Access Plus Capital, a community development financial institution (CDFI) serving underinvested communities in central California, is dedicated to supporting small businesses. We offer a range of free resources, including technical assistance, to help you navigate tax season with confidence. Contact us at info@accesspluscapital.com or through our contact form to learn more about our services.
Bakersfield Location
841 Mohawk Street
Bakersfield, CA 93309
(661) 322-9019
Fresno Location
2607 Fresno Street
Fresno, CA 93721
(559) 552-4300
Modesto Location
(209) 297-9620
Sacramento Location
916-237-8430
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