“In this world nothing is certain but death and taxes."
- Benjamin Franklin, founding father

Mastering Year-End Prep:
A Stress-Free Guide for Small Business Owners, Part 3

February puts us square in the middle of tax season. You want to be wrapping things up so you can hand everything off to your tax professional. With tax deadlines around the corner, this is your final chance to resolve discrepancies and finalize documentation so you can file on time.

Once you finish and hand it off, you WILL breathe a sigh of relief. Then you can focus on keeping THIS year organized and up to date!

February: Finalizing Records and Preparing for Tax Filing

1. Complete Year-End Financial Statements

What to Do: Prepare your income statement, balance sheet, and cash flow statement. These will be required by your tax preparer.

How: Finalize and close out the bookkeeping for the tax year, and then go get those reports!

Why It Matters: Running them before you complete the year can result in mistakes and amended returns. No one wants that.

#PennysProTip: Reconcile all accounts to catch errors before filing. Ideally your bookkeeper or whoever handles your monthly books is doing this each month.

2. Review and Finalize Tax Returns

With Whom: Work closely with your tax professional or accountant to ensure accuracy.

What to Check: Verify calculations, deductions, and business credits

#PennysProTip: Don’t be afraid to ask questions! Yes, these people are professionals, but it’s your business and your money on the line. If you’re not clear on something, ask. Remember, knowledge is power.

3. Gather Additional Documents

Examples: Loan statements, payroll records, and permits/licenses needed to file a complete tax return.

How I Know What I Need: Ask!

#PennysProTip: Doing this throughout the year will have everything ready to go by the end of December!

Now you're ready! Hand over that stuff over to your tax professional as soon as possible.

February Checklist

• Close out the tax year.

• Run your financial reports - income statement, balance sheet, and cash flow statement.

• Gather up any additional documents and statements needed.