Year-End Business Planning Checklist

Income Statement: Shows the Yearly Revenue, Expenses & Profit. Confirm the accuracy of each line item of this report to ensure that you’re not overstating income and eliminate all “red flags” to avoid a possible tax audit.

Balance Sheet: Shows all Assets, Liabilities & Equity, comparing what the business owns to what the business owes. Year end adjusting journal entries may be needed to ensure continual updated accurate financial data.

Compare these statements to previous years to give you a better idea of the financial health of your business and to see how your company is progressing.

Ensure that you have attained completed W-9’s from all subcontractors so that you can issue the mandatory 1099-NECs to each of these subcontractors by the January 31 deadline. For 2026 forms that deadline is February 1, 2027, because January 31, 2027 falls on a Sunday (see the IRS Form 1099-NEC instructions).

Ensure payroll accuracy to complete and issue the mandatory W-2’s to all employees by the required deadline, February 1, 2027 for 2026 forms (see the IRS Instructions for Forms W-2 and W-3).

Confirm that all bi-weekly, monthly & quarterly payroll tax filings are accurate in preparation to complete all mandatory federal, state & local payroll tax withholding annual reconciliations.

Maximize deductions and ensure that you are keeping accurate records and following all legal guidelines.

Possibly defer income to lessen your tax liability.

Ask whether bonus depreciation or a Section 179 deduction applies to qualifying assets placed into business use this year, and make any such purchases by year end. The percentages and limits change with the tax law, so confirm the current figures with your tax professional before you buy.

Establish, or contribute to, a tax favored retirement plan to significantly reduce taxable income.