Year-End Books Readiness Check

1. Reconcile every account through December 31

• Every business checking, savings, and credit card account reconciled to the bank statement, month by month, through December.
• Loans and equipment financing: the balance in your books matches the lender's year-end statement.
• Transfers between your own accounts recorded as transfers, not income or expenses.
• Payment apps and processors (Square, Stripe, PayPal, Venmo business) tied to the deposits they sent your bank.

Trades: match customer deposits and progress payments to the jobs they belong to.

Trucking: match broker and factoring deposits to the load invoices, including factoring fees withheld.

2. Make sure all income is in the books

• Every deposit from work you did is recorded, including checks, cash, Zelle, and app payments.
• You don't wait for a Form 1099 to record income. Payment apps are required to report on Form 1099-K only above $20,000 and more than 200 transactions, but you may receive one below that, and all income is reportable either way.

3. Receipts and documentation

• Receipts or other documentary evidence saved for lodging on the road and for any other travel, gift, or vehicle expense of $75 or more. If you use the standard mileage rate, your mileage log covers the vehicle instead of receipts for fuel and repairs.
• Big-ticket purchases have the invoice, not just the card charge.
• Anything you flagged as "not sure" during the year has been reviewed and categorized.

4. Owner pay and distributions

• Money you took out for yourself is recorded as owner draws or distributions, not as a business expense.
• Personal expenses paid from the business account are moved out of expense categories.
• [S-corp only]Distributions to each owner follow ownership percentages, and you can show how much each owner took.

5. Subcontractors: W-9s and 1099 prep

• A Form W-9 on file for every subcontractor and vendor you paid for services. Getting it before you pay is easier than chasing it in January.
• A list of everyone you paid $2,000 or more for services in 2026. The threshold rose from $600 for payments made after December 31, 2025.
• Payments by credit card or through a third-party payment network left off that list. The processor reports those on Form 1099-K.
• Payments to corporations generally left off, except payments for legal services. The W-9 tells you how each payee is taxed.
• If someone won't give you a correct taxpayer ID, you may have to hold back 24% of future payments (backup withholding).

Deadline: Forms 1099-NEC go to the IRS and to each contractor by February 1, 2027 (January 31 falls on a Sunday). File electronically if you have 10 or more information returns in total.

6. Payroll and reasonable salary [S-corp only]

• Each owner who works in the business was paid a salary through payroll during 2026, not only distributions.
• That salary holds up against the work you do. The IRS looks at your duties, time spent, experience, and what comparable businesses pay for the same work.
• Health insurance premiums the S-corp paid for owners with more than 2% ownership are added to their W-2 wages (box 1) before W-2s go out.
• Your payroll provider has what it needs for year-end. W-2s go to employees and the Social Security Administration by February 1, 2027.

7. Sales tax, if you're registered

• Every Florida sales and use tax return for 2026 is filed, including periods with no tax due. Florida requires a return for each period.
• Tax you collected in the books matches what you reported.
• The return covering December is due January 1 and late after January 20, 2027.

8. Mileage and vehicle records

• A mileage log for each vehicle used in the business: date, destination, business purpose, and miles, recorded at or near the time.
• Miles split at July 1, 2026. The IRS business standard mileage rate is 72.5 cents per mile for January 1 through June 30 and 76 cents per mile from July 1 through December 31, 2026.
• If you use actual costs instead, fuel, repairs, insurance, and registration are in their own categories.

Trucking: keep miles by state and fuel receipts for IFTA. Florida's fourth-quarter IFTA return is due January 31, which moves to February 1, 2027 because of the weekend. Keep a log of nights away from home with dates and locations.

9. Equipment, vehicle, and other large purchases

• For each asset bought in 2026 (trucks, trailers, tools, equipment, computers): the invoice, the date you started using it, the total cost, and any financing or trade-in paperwork.
• Assets you sold, traded, or scrapped in 2026 noted, with the sale paperwork.
• If you expense small purchases under the de minimis safe harbor (up to $2,500 per invoice or item without audited financial statements), your preparer knows. It requires a consistent policy in place at the start of the year and an election with the return.

10. Estimated tax payments

• Confirmations for every 2026 federal estimated payment, with dates and amounts.
• The fourth 2026 payment is due January 15, 2027.

11. Records ready for the return

• December closed: a profit and loss statement and balance sheet you trust for the full year.
• Year-end statements for every bank, credit card, loan, and payment account.
• Copies of 1099s you issued and 1099s you received.
• Last year's return on hand.
• [S-corp only]Form 1120-S for 2026 is due March 15, 2027. Your personal return depends on it, so the S-corp books need to close first.
• Thinking about an S-corp election for 2027? Form 2553 can be filed any time in 2026, or by March 15, 2027 for a calendar-year election.