How to Get Your Business Tax-Ready for Filing Season

Tax season is fast approaching, and for business owners, early preparation is the key to avoiding stress, maximizing deductions, and ensuring compliance with IRS regulations. A well-organized tax filing process not only saves time but can also reduce your tax liability and keep your business financially healthy.

From gathering important documents to understanding IRS deadlines and working with a tax professional, here’s everything you need to do to ensure your business is ready for tax season.

Gather the Essential Tax Documents

Having the right documents in place before filing your taxes can save you from last-minute scrambling. Make sure you have the following:

Income Statements

• W-2s for employees and 1099s for independent contractors

• Bank statements reflecting all revenue sources

• Profit and loss (P&L) statements for a comprehensive view of earnings

Expense Records

• Receipts for deductible business expenses such as office supplies, travel, and meals

• Utility and rent invoices if you operate from an office or home office

• Loan and interest payment statements

Payroll Records

• Employee salaries and benefits breakdowns

• Payroll tax payment records

• Contributions to employee retirement accounts

Previous Tax Returns

• Last year’s return can serve as a reference for deductions and credits

• Compare year-over-year changes in income and expenses

Fixed Asset Purchases

• If you purchased new equipment, software, or business vehicles, keep records for depreciation deductions

• Section 179 deductions allow businesses to expense certain asset purchases immediately

Having these documents organized and easily accessible will help streamline the tax filing process and ensure accuracy.

Review Last Year’s Tax Return

Taking time to analyze last year’s return can uncover opportunities and potential mistakes.

Identify Missed Deductions

Many businesses overlook deductions they qualify for, such as:

• Home office deductions

• Business mileage

• Education or training expenses

Reviewing past returns can help identify areas where you may be able to lower your taxable income this year.

Assess Financial Performance

Comparing year-over-year data provides insight into business growth and financial stability. This can also help determine whether restructuring your business entity (e.g., transitioning from an LLC to an S-Corp) could provide tax advantages.

Understand IRS Changes

Tax laws frequently change, and staying up to date can help you avoid unexpected liabilities. Be aware of any new deductions, credits, or changes in tax brackets that may impact your filing.

Know the Key IRS Filing Deadlines for 2025

Missing a tax deadline can result in penalties and interest charges. Here are the critical dates to keep in mind for 2025:

• January 15 – Fourth-quarter estimated tax payment due for the 2024 tax year

• January 31 – Deadline to send W-2s to employees and 1099s to contractors

• March 15 – Business tax return deadline for S-Corps and Partnerships (Form 1120S, Form 1065)

• April 15 – Deadline for individual tax returns and C-Corporations (Form 1040, Form 1120)

• October 15 – Extended deadline for individual and corporate tax returns (if an extension was filed)

Marking these dates on your calendar and setting reminders can help you stay on track.

Maximize Deductions and Tax-Saving Strategies

There are still ways to reduce your tax liability before the filing deadline:

Contribute to Retirement Plans

Max out contributions to tax-advantaged retirement accounts such as:

• 401(k) Plans – Employer contributions are deductible

• SEP IRA – A great option for self-employed individuals looking to lower taxable income

Leverage Bonus Depreciation and Section 179

• If your business purchased equipment or property, take advantage of bonus depreciation rules

• Under Section 179, you may be able to deduct the full cost of qualifying assets rather than depreciating over time

Make Charitable Contributions

Donating to qualified charities not only supports a good cause but can also lower your tax bill. Ensure you keep records of all contributions to maximize your deduction.

Work with a Tax Professional for Maximum Savings

While business owners can attempt to navigate tax season alone, working with a professional can make a significant difference:

✔ Expert Guidance – Tax professionals understand the latest tax laws and how they apply to your business.
✔ Maximizing Deductions – A tax expert can identify deductions you may have missed and ensure you take full advantage of tax-saving opportunities.
✔ Avoiding IRS Penalties – Compliance errors and late filings can result in costly penalties. A professional can help you stay on track.
✔ Audit Protection – If your business is ever audited, having an expert on your side can be invaluable.

Take Action Now – Don't Wait Until the Last Minute

The earlier you start preparing for tax season, the more options you have to reduce your tax bill and avoid the stress of last-minute filing. Gathering documents, reviewing your financials, and working with a tax professional now can make all the difference when April rolls around.

Not sure where to start? At Bernstein Tax Group, we specialize in helping business owners optimize their tax filings and keep more of their hard-earned money.

📅 Schedule a free consultation today and let’s make this tax season your easiest one yet!