Small-Business Tax Checklist for Central Texas

A good business tax file tells one consistent story: where revenue came from, what it cost to earn it, which assets were purchased, what was paid to workers, and how the owner handled taxes during the year. A stack of bank statements is a starting point, not a finished set of books.

This checklist is designed for Central Texas sole proprietors and small businesses. Entity type, payroll, inventory, vehicles, home offices, and multi-state activity can add requirements, so use it to organize the conversation rather than to decide tax treatment by yourself.

Income and cash reconciliation

Collect Forms 1099, merchant-processor summaries, invoices, deposit reports, and records of cash receipts. Then reconcile total recorded income to business bank deposits while identifying transfers, loans, owner contributions, and refunds that are not sales.

Payment-platform forms may not equal taxable gross receipts, and the absence of a form does not make business income non-taxable. Your books should capture actual activity and explain differences.

Expenses and supporting records

Organize costs by meaningful categories such as advertising, insurance, supplies, software, rent, utilities, professional services, contractor payments, and bank fees. Keep receipts or invoices that show business purpose, especially for travel, meals, equipment, and mixed-use purchases.

For vehicles, keep a contemporaneous mileage log and total annual miles, not just fuel receipts. For a potential home office, keep measurements and applicable household cost records. Eligibility depends on facts, not on owning a business.

Assets, debt, payroll, and sales tax

List equipment, vehicles, computers, furniture, and other major purchases with purchase dates, costs, financing documents, and business-use percentages. Separate loan proceeds from income and loan principal from interest.

If you paid employees or contractors, gather payroll reports, filed employment-tax forms, and contractor information returns. Texas sellers should reconcile sales tax collected and remitted separately from revenue. These areas create problems when they are left for a preparer to reverse-engineer after year-end.

Owner and prior-year items

Bring the prior-year return, estimated federal tax payments, owner draws or distributions, health-insurance information, retirement contributions, and any IRS or Texas Comptroller notices. Tell your preparer about changes in ownership, addresses, business activity, or entity elections.

If the books do not reconcile, schedule cleanup before tax preparation. Moreno Financial Services offers catch-up and monthly bookkeeping for Central Texas businesses, with the scope and price confirmed before work begins.