Now that tax filing season has paused and everyone can breathe a little easier for the next few months, we can reflect on some of the season’s takeaways for small business owners. Take a look at some of these helpful tips below to keep your business on track.
1. Maintain Accurate and Complete Financial Records
Bookkeeping is more than just bean counting – it is the scorecard for your business. It shows how you performed over a period of time and can help you make decisions to improve operations in the future. Here are some best practices for keeping your books clean:
- No commingling! Separation of personal and business finances is non-negotiable.
- Use dedicated business bank accounts and credit cards to ensure that every professional expense is accounted for.
- Track expenses in real-time with a spreadsheet or software rather than scrambling through receipts in April.
2. Track Business Mileage for Personal Vehicles
If you use a personal vehicle for business purposes—such as meeting clients or picking up inventory—you are entitled to a deduction. Record the date, business purpose, and total miles for every trip. Using a mileage-tracking app is the most reliable way to secure this deduction. Relying on “estimates” is a red flag for auditors so only claim what you can prove.
3. Allocate Business Use of Personal Assets
When personal assets like cell phones, internet plans, or home spaces serve dual purposes, you must determine the percentage of business use. For example, if 50% of your data usage is for business, you can deduct half the bill.
Important Note: To claim the home office deduction, the IRS says the space must be used “regularly and exclusively” for business. You may use the simplified method (a flat rate per square foot) or the actual expense method (allocating the percentage of business use to mortgage interest, utilities, and insurance).
4. Collect W-9 Forms For All Vendors
You must collect W-9 forms from ALL of your vendors. If you pay a vendor $600 or more during the year for services performed (goods are excluded from this requirement), you are required to file Form 1099-NEC. Collecting the W-9 at the start of the working relationship prevents the common year-end headache of chasing down contractors for their information.
5. Stay Current with Estimated Taxes
Business owners must make quarterly payments to the IRS to stay ahead of their estimated tax liability. Working with your tax advisor is key to ensuring you are paying your fair share of taxes throughout the year. 2026 Estimated Tax Payments must be made by the following deadlines:
- April 15, 2026
- June 15, 2026
- September 15, 2026
- January 15, 2027
This list is just a start to staying on top of your business finances and tax planning during the year. For more helpful tips and ways to stay ahead of the game, schedule your consultation with our office today.
Any content, resident submissions, guest columns, advertisements, and advertorials are not necessarily endorsed by or represent the views of Best Version Media LLC (BVM) or any municipality, homeowners associations, businesses, or organizations that this publication serves. BVM is not responsible for the reliability, suitability, or timeliness of any content submitted, inclusive of materials generated or composed through artificial intelligence (AI). All content submitted is done so at the sole discretion of the submitting party.
