Small Business Tax Checklist

Comprehensive Expense Documentation

Maximizing your deductions requires thorough and organized documentation of all business expenses. Key categories include Cost of Goods Sold (COGS) for businesses that carry inventory, which requires beginning and ending inventory totals. You must also compile receipts and statements for advertising, office supplies, rent, utilities, business insurance, and professional fees paid to attorneys or consultants. If you use a vehicle for business purposes, you need a detailed mileage log showing total miles driven, business miles, and commuting miles, or documentation of actual vehicle expenses like gas, repairs, and insurance. 4P Taxes LLC helps you identify all eligible deductions to minimize your tax liability effectively.

Asset Purchases and Depreciation

When your business purchases significant assets—such as heavy machinery, computers, office furniture, or commercial vehicles—these costs are typically recovered over time through depreciation. To correctly calculate this deduction, you must provide the purchase date, total cost, and a description of each asset acquired during the tax year. If you sold or disposed of any business assets, you need to provide the date of sale and the sale price. Proper tracking of these capital expenditures is essential for taking advantage of tax benefits like Section 179 deductions or bonus depreciation, which can significantly lower your current-year taxable income.