Colorado small business tax season checklist

A good tax-season package begins with complete books, not a box of receipts. Use this checklist to organize the information your tax professional will need and to catch common bookkeeping problems before filing.

Reconcile through December 31

Reconcile every bank account, credit card, loan, line of credit, and payment processor through year-end. Confirm that the ending balances in the books match the statements. Review old outstanding checks and deposits rather than deleting them without an explanation.

Gather income records

Collect year-end bank and merchant statements, sales summaries, invoices, and Forms 1099 received by the business. Compare those documents with recorded revenue. A 1099 is an information report, not the only income a business must report, so the books should reflect all business income.

Review expenses and receipts

Scan large, unusual, or uncategorized expenses and attach supporting documents. The IRS says records should support the income, deductions, and credits reported on a return. Official source

Identify assets and financing

Prepare a list of equipment, vehicles, computers, furniture, and other long-lived property bought or sold during the year. Include purchase dates, costs, trade-ins, financing documents, and disposal proceeds. Separately gather year-end loan statements showing principal and interest.

Confirm payroll and contractor records

Compare annual payroll reports with quarterly filings and W-2 totals. Review payments to nonemployees early enough to determine whether an information return is required. Keep employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Official source

Check owner activity

Review owner contributions, distributions, draws, reimbursements, and personal expenses paid by the business. These should not be buried in ordinary revenue or expense categories. Your business structure determines how owner activity is reported.

Review Colorado accounts

If the business collects sales tax, reconcile tax collected with returns filed and payments made. Colorado retailers may have state-administered and home-rule local obligations, so confirm the jurisdictions connected to each location and delivery. Official source

Check whether your Colorado entity's Periodic Report is current and whether its principal office and registered-agent information are accurate. This filing is separate from the income-tax return. Official source

Ask before making a last-minute correction

Do not force the books to match a tax form or move a transaction simply to change the result. Document the difference and ask your bookkeeper or tax professional. A clear question is easier to resolve than an unsupported adjustment.

Package the records clearly

Tax rules and deadlines depend on entity type and can change. Confirm the current filing calendar with your tax professional and the relevant government agency. Ponderosa can help reconcile and organize the books before they reach the return preparer.