Introduction
Tax season is coming. For most startup founders, the deadline of April 15, 2025, brings a wave of panic.
Did I save enough receipts? Did I miss any deductions? Is the IRS going to audit me?
If you are scrambling to find documents, you are not alone. But waiting until the last minute is how you overpay taxes and trigger penalties.
We created this Ultimate 2025 Tax Prep Checklist to help you gather everything you need in one afternoon—so you can hand it to your accountant and relax.
Step 1: Gather Your Business Information
Before you look at a single number, ensure your basic business data is up to date. Your accountant cannot file without these:
- EIN Number: (Employer Identification Number).
- Last Year’s Tax Return: (2024 Return). This is crucial for checking carry-over losses.
- Ownership Details: If you added a co-founder or gave equity to an employee this year, have the updated cap table ready.
Step 2: The “Big Three” Financial Reports
This is where 90% of startups fail. Consequently, you cannot file a business tax return using a box of receipts. You need formal financial statements.
Specifically, you must provide your accountant with:
- Profit & Loss Statement (Income Statement): Shows exactly how much you made and spent.
- Balance Sheet: Shows your assets (cash, equipment) and liabilities (loans, credit card debt).
- Cash Flow Statement: Shows money entering and leaving your bank account.
⚠️ Vital Note: If you don’t have these reports yet, you need to generate them immediately.
For those using software like QuickBooks Online or Xero, you can simply download these with one click.
However, if you are still using Excel, you need to migrate to software now to generate accurate reports before the deadline. 👉 Check out our guide to the Best Bookkeeping Software here
Step 3: Collect Income Records
Next, you need to prove every dollar that came into your business.
- Gross Receipts: Sales records from Stripe, PayPal, Shopify, or your bank.
- Returns & Allowances: Records of any refunds you gave to customers (fortunately, these lower your taxable income!).
- Interest Income: Did your business savings account earn interest? If so, you need the 1099-INT form from your bank.
Step 4: Gather Expense Proof (The Deductions)
This is how you lower your tax bill. Remember, every legitimate business expense reduces your taxable profit.
For example, gather proof for:
- Advertising: Facebook Ads, Google Ads, website hosting.
- Software Subscriptions: Zoom, Slack, Notion, QuickBooks/Xero.
- Office Supplies: Laptops, desks, paper.
- Rent & Utilities: If you rent an office space.
- Professional Fees: Lawyers, consultants, and contractors.
💡 Pro Tip: Startups can deduct up to $5,000 in startup costs in their first year. Therefore, make sure you highlight these for your accountant!
Step 5: Contractor & Employee Forms
If you paid people, the IRS wants to know.
- Employees (W-2): Ensure payroll was filed correctly.
- Contractors (1099-NEC): Did you pay a freelancer more than $600 this year? You MUST file a 1099 form for them by January 31st. If you miss this, the penalties are steep.
Conclusion: Don’t Let Tax Season Break You
The difference between a stressful tax season and an easy one is organization.
If you are reading this checklist and realizing you don’t have a Profit & Loss statement, don’t panic—but do act fast.
Stop relying on spreadsheets and shoeboxes. Automate your financial reporting today so you are ready for April 15th.
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