Year End Tax Checklist

Accounting, taxes, Planning, Checklists, Year end, Small business 12/13/22

Our gift to you! A year-end tax checklist for small businesses!Now that you are through the hard part of finalizing your company’s accounting, you can move onto the fun part! The year end tax checklist. The very first step is to complete the Year End Accounting Checklist. We know you don’t want to wind up on the naughty list so no cheating! Some of the steps on this checklist will require the accounting to be done first.

  • Complete all items on the accounting checklist we posted here.

  • Schedule a meeting in EARLY December (like this week, if possible) with your tax preparer to help you identify any year-end strategies to utilize:

    • Tax credits

    • Defer revenue opportunities

    • Accelerate expenses for needed items (Keep in mind that a $100,000 purchase may save you 25% in taxes, but will still be an outflow of cash (or debt) of $100,000).

    • NOTE: if you are planning to exit your business in the next 1-5 years, any additional expense will reduce your overall EBITDA (earnings before interest, taxes, depreciation and amortization) and that 25% you save now, may cost you 200% in your final sales price.

o   Scan all receipts for amounts over $25 and attach to your transactions. Make sure all purchases have a description of the business purpose of the expense (ie. Lunch with potential client; discussed current tool needs).

o   Adjust payroll in order to maximize any retirement contributions for the year.

o   Contribute the maximum amount to your HSA if you are eligible.

o   If you have employees, be sure to remind them to contribute the maximum to their HSA and retirement accounts as well!


o   If your entity type is a “Pass-through” entity, consider prepaying the state tax due before year end. As taxes will be paid at the individual level and state and local taxes are now limited as an itemized deduction, there will likely be a higher benefit to paying the state taxes at the business level (earning you a deduction), than paying them individually. A rough calculation would be your anticipated taxable income multiplied by the average tax rate of your state. For Idaho, this would be 6.0% for 2022.

o   Review your accounting records to determine the federal and state tax payments you made during the year.

o   Review your accounting records to be sure all personal expenses are appropriately labeled as such.

o   Check in again with your tax preparer to inform them of any changes you have made subsequent to your initial meeting!

Now, turn on your favorite Christmas music, grab a cup of cheer, and do a happy dance (after you set down your cup of cheer) as you are done, and you can get ready for the all the festivities the holidays bring! Grab a bottle of champagne or sparking juice and celebrate!


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