Filing a tax return as a small business owner requires more documentation than a standard individual return. Having the right documents organized before tax season saves time, reduces errors, and helps your tax preparer file accurately and on time.
Business Income Records
To file your small business tax return you need a complete record of all income received during the tax year:
- Bank statements showing all deposits
- Invoices sent to clients
- PayPal, Stripe, or other payment processor statements
- 1099-NEC forms received from clients who paid you $600 or more during the year
Business Expense Records
The IRS allows small businesses to deduct ordinary and necessary business expenses. Keep records of:
- Rent or home office expenses
- Office supplies and equipment purchases
- Software and subscription costs
- Business-related travel and mileage log
- Professional fees including legal and accounting
- Advertising costs
- Business insurance premiums
Payroll Records
If your business has employees you will also need:
- Quarterly 941 payroll reports filed during the year
- W-2 forms issued to all employees
- Records of all payroll tax deposits made throughout the year
Bank and Financial Statements
- Year-end bank statements for all business accounts
- Business credit card statements
- Loan statements if your business has outstanding debt
Previous Year Tax Return
Your prior year tax return is required for electronic filing — it is used to verify your identity with the IRS. It also contains carryover amounts and depreciation schedules that affect your current year return.
New York State Specific Documents
If you operate in New York State you will also need:
- Records of NY sales tax collected and filed during the year
- NY estimated tax payment records (Form IT-2105)
- Any notices or correspondence from the NY Department of Taxation and Finance
Summary
Need help organizing your documents and filing your tax return?
Accynta prepares federal and New York State tax returns for small businesses and freelancers. Contact us before tax season gets busy.