# Small business year-end checklist: what you gather, what your accountant does

[Home](/) / [Checklists](/checklists) / [Year-end close](/checklists/year-end-close) / Small business year-end

By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-31, updated 2026-10-31.

> **In brief:** A small business year end checklist splits the year’s last tasks in two. The owner gathers statements, receipts and contractor tax forms, and the bookkeeper or CPA reconciles the books, files wage and 1099 forms, and prepares the tax return.

## The checklist: Small business year-end checklist

The first two groups are yours: gather these papers and send them to your bookkeeper by mid-January. The last group shows what your bookkeeper or CPA does with them.

### You gather: accounts and loans

- [ ] December statement for every business bank account: Include accounts closed during the year.
- [ ] December statement for every card used for the business
- [ ] Year-end statement for each business loan: Principal owed and interest paid.
- [ ] Form 1098 for a mortgage on business property: Sole proprietors only; a corporation or partnership uses the lender’s year-end statement.
- [ ] Mortgage statement for the last payment of the year

### You gather: purchases, people and the rest

- [ ] Receipts for equipment, vehicles and computers: With the date each one went into use.
- [ ] Vendor invoices for large or unusual bills
- [ ] Form W-9 from every contractor or landlord paid by check, cash or transfer
- [ ] List of contractors paid by card or payment app: They get Form 1099-K from the payment company.
- [ ] Vehicle mileage log: Only if you deduct business miles.
- [ ] Home office size and costs: Only if you claim the home office.
- [ ] Inventory count on the last day of the year: Only if you sell products.
- [ ] Health insurance and retirement plan payments by the business

### Your bookkeeper or CPA does

- [ ] Reconcile every account through December
- [ ] Review unpaid invoices and bills with you
- [ ] Record assets and depreciation
- [ ] Confirm W-2s with the payroll provider: Due February 1, 2027 for the 2026 year.
- [ ] Prepare and file Forms 1099-NEC: $2,000 or more paid in 2026, corporations generally excluded. Due February 1, 2027.
- [ ] Prepare the tax return from the year-end package
- [ ] Store the year’s records securely: At least 3 years; employment tax records at least 4.

Download: [PDF](https://dokutrak.com/downloads/pseo-v2/f5-checklists/year-end-close/small-business.pdf) · [Word](https://dokutrak.com/downloads/pseo-v2/f5-checklists/year-end-close/small-business.docx) · [Excel tracker](https://dokutrak.com/downloads/pseo-v2/f5-checklists/year-end-close/small-business.xlsx)

## Who does what at year end

Most owners do not close their own books, but the close cannot start without them. Your accountant can reconcile a bank account in minutes once the statement arrives, yet only you can download it.

Think of the list in two columns. Your column is papers. Theirs is the books, the filings and the return.

For example, **the year-end package** is the set of reports your bookkeeper hands the CPA: profit and loss, balance sheet, asset list, and the payroll and 1099 filings. Everything you gather feeds it.

| Task | You | Your bookkeeper or CPA |
| --- | --- | --- |
| Bank and card statements | Download December for every account | Reconcile each account to its statement |
| Contractors | Collect a W-9 from each one you paid | Prepare and file the 1099 forms |
| Equipment and vehicles | Send receipts with the date each went into use | Record the asset and its depreciation |
| Employees | Answer questions on bonuses and benefits | Check the Forms W-2 and payroll returns |
| Tax return | Sign and pay | Prepare it from the year-end package |

## What you gather before the end of January

Start with money accounts. Download the December statement for every business bank account and card, including any account you closed during the year.

If the business owes money, ask the lender for the year-end statement. If you are a sole proprietor with a mortgage on business property, the lender also sends Form 1098 showing the interest you paid; a corporation or partnership does not get one ([IRS, Instructions for Form 1098](https://www.irs.gov/instructions/i1098)).

Big purchases need a receipt. **Depreciation** is the way the cost of equipment or a vehicle is spread over the years you use it, and the IRS expects records showing when and how you acquired each asset and its price ([IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583)).

If you sell products, count what is on the shelf on the last day of the year. The IRS requires a business that sells goods to value its inventory at the beginning and end of each tax year ([IRS Publication 334, Tax Guide for Small Business](https://www.irs.gov/publications/p334)).

- A mileage log, if you deduct business use of a vehicle.
- Home office measurements and costs, if you claim the home office.
- Health insurance and retirement plan payments made by the business.
- A note on any loan, grant or large transfer the bookkeeper may not recognize.

## Contractors and the new 1099 threshold

**A Form W-9** is the form a contractor fills in to give you their legal name, taxpayer ID and entity type. Collect it before you pay, or at the latest in December, because the 1099 needs that number.

The reporting floor changed. For tax years beginning after 2025, you report nonemployee pay on Form 1099-NEC once it reaches $2,000 ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)). For payments made in 2025, the floor was still $600 ([IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025)](https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf)). Payments to a corporation are generally not reported, except fees paid to a lawyer or for medical care ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)). Form 1099-NEC is due January 31, moved to the next business day when that date falls on a weekend, so February 1, 2027 for 2026 payments ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)).

Payments by credit card or through a payment app are handled differently. Those are reported on Form 1099-K by the payment company, not by you on a 1099-NEC ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)). Give your bookkeeper a list of contractors you paid that way so they are left out.

The [Form W-9 guide](/documents/w-9) shows what a complete form looks like, and the [TIN checker](/tools/tin-checker) catches an ID typed wrong.

## Payroll at year end

If you have employees, your payroll provider prepares most of the forms. You still own the deadline, so confirm the provider has your final pay date and any bonuses.

Forms W-2 for 2026 must reach your employees, and the SSA, by February 1, 2027 ([IRS, General Instructions for Forms W-2 and W-3 (2026)](https://www.irs.gov/instructions/iw2w3)). Read your W-2 previews in early January, while names, addresses and Social Security numbers can still be fixed.

## Choices to make before the year ends

Some moves change this year’s tax only if they happen before the year ends, such as placing equipment in service or paying bonuses. Some retirement plans, such as a SEP, can still be set up and funded up to the return’s due date, extensions included ([IRS, Simplified Employee Pension Plan (SEP)](https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep)). Talk to your CPA in November, not in March.

Bring a rough profit figure for the year to that meeting. Your bookkeeper can give you one from the books once November is reconciled.

## How long to keep the year’s records

Once the return is filed, the papers become your proof. The IRS says to keep records for 3 years in most cases, and employment tax records for at least 4 years after the tax is due or paid ([IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records)).

Some cases call for longer. If income was underreported by more than 25% of what the return shows, the period is 6 years ([IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583)).

Keep them where only the right people can read them. Statements and Forms W-9 carry account and Social Security numbers, so a shared folder open to everyone is the wrong place.

## Questions people ask

### What should a small business give its accountant at year end?

December statements for every bank and card account, year-end loan statements and any Form 1098, and receipts for large purchases. Add a Form W-9 from each contractor, an inventory count if you sell products, and notes on unclear transfers.

### Do I need to send 1099s for 2026 payments?

Yes, to each contractor you paid $2,000 or more for services in 2026, by check, cash or bank transfer, unless the contractor is a corporation other than a law firm ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)). Payments by card or payment app are reported by the payment company on Form 1099-K instead ([IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)).

### When are W-2s due for the 2026 year?

By February 1, 2027, both to employees and to the SSA with Form W-3 ([IRS, General Instructions for Forms W-2 and W-3 (2026)](https://www.irs.gov/instructions/iw2w3)).

### How long should a small business keep its year-end records?

At least 3 years in most cases, and at least 4 years for employment tax records ([IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records)). Keep them longer if income may have been underreported, since the period can reach 6 years ([IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583)).

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

## Sources

- [IRS Publication 583, Starting a Business and Keeping Records](https://www.irs.gov/publications/p583): Asset records must show when and how each asset was acquired and its price, and the period of limitations sets how long records are kept: 3 years in most cases, 6 years when income is underreported by more than 25%.
- [IRS, Instructions for Form 1098](https://www.irs.gov/instructions/i1098): A lender files Form 1098 for mortgage interest of $600 or more received from an individual, including a sole proprietor; no Form 1098 is filed for interest received from a corporation, partnership, trust or estate.
- [IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025)](https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf): For 2025 payments, Form 1099-NEC reports nonemployee compensation of at least $600.
- [IRS Publication 334, Tax Guide for Small Business](https://www.irs.gov/publications/p334): A business that makes or buys goods to sell must value its inventory at the beginning and end of each tax year to figure the cost of goods sold.
- [IRS, Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec): For tax years beginning after 2025 the reporting floor is $2,000; Form 1099-NEC is due January 31, Form 1099-MISC goes to recipients by January 31 and to the IRS by February 28 on paper or March 31 electronically, and a weekend date moves to the next business day. Payments to corporations are generally not reported, except attorneys’ fees and medical payments.
- [IRS, General Instructions for Forms W-2 and W-3 (2026)](https://www.irs.gov/instructions/iw2w3): 2026 Forms W-2 and W-3 are due to the SSA by February 1, 2027, on paper or electronically, and employees must get their W-2 by the same date.
- [IRS, Simplified Employee Pension Plan (SEP)](https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep): A SEP can be set up as late as the due date, including extensions, of the business income tax return, and employer contributions are due by that date.
- [IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records): Keep records 3 years in most cases, and employment tax records at least 4 years after the tax becomes due or is paid, whichever is later.

## More on this topic

- [Year-end close checklist](/checklists/year-end-close)
- [Form W-9 guide](/documents/w-9)
- [Tax document checklists](/checklists/tax-documents)
- [Tax Deductions for Small Business: Records Checklist](/checklists/tax-documents/small-business)
- [Compilation Engagement Letter Template: AR-C 80 Terms (Word)](/templates/engagement-letters/compilation)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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