Start with your income records. This includes all 1099s you received, sales reports from payment processors like Stripe or Square, and bank statements showing deposits. If you invoice clients, pull a summary of everything billed and collected during the year. Your tax preparer needs a complete picture of revenue, not just what’s in your bank account.

Next, pull together your expense documentation. Bank and credit card statements are the foundation, but receipts matter for anything over $75 and for categories the IRS tends to scrutinize like meals, travel, and vehicle expenses. If you use QuickBooks or another accounting system, run a profit and loss report for the year and review it for anything that looks miscategorized or missing. A clean P&L makes business tax return preparation significantly faster and less expensive.

Payroll records are critical if you have employees. You’ll need year-end payroll reports showing total wages, taxes withheld, and employer tax contributions. If you paid contractors, make sure you have W-9s on file and that 1099s have been prepared. These are due to recipients by January 31, so don’t wait on this one.

Gather documentation for any major asset purchases. Equipment, vehicles, computers, and furniture bought during the year may qualify for Section 179 expensing or bonus depreciation. Have the purchase date, amount, and how it’s used in the business. If you sold or disposed of any business assets, document that too because there may be gains or losses to report.

Loan and debt records matter more than people realize. Pull year-end statements for any business loans, lines of credit, or equipment financing. The interest paid is deductible, and your lender should provide a statement showing the total interest for the year. If you used a personal vehicle for business, have your mileage log ready with total business miles driven.

Keep your prior year tax return accessible. Your preparer needs it for comparison, carryforward amounts, depreciation schedules, and to catch anything that might have changed year over year. If you changed your business structure, opened new bank accounts, or started operating in a new state during the year, note that as well.

Finally, if you made estimated tax payments during the year, document the dates and amounts for both federal and state. These reduce what you owe at filing but only if they’re properly accounted for on your return.

The business owners who have the smoothest tax seasons are the ones who keep records organized throughout the year rather than scrambling in February. If you’re behind, even a few hours of focused sorting now will save real money in preparation fees and reduce the chance of missing deductions. Working with CFO services for small businesses throughout the year makes this process almost automatic because your books are already clean and your records are already in order when tax season arrives.