Happy 11:11!
Sending this to you now so you can breathe. and have a true Christmas and New Year break 🤍
Whether you handle your books yourself, work with me (hi ✨), or have your own bookkeeper, if you want tax season to feel smooth, there are a few smart moves to check off.
This is your personal prep list broken down by timing!
Getting to these will mean fewer emails, faster filing, the ability to sit in front of the fireplace in pjs and hot cocoa watching “Home Alone” or “Elf” instead of staring at your laptop screen and scouring for receipts 🫠. Not to mention might possibly lead to even better deductions.
Tax season prep checklist:
Do these now (before December 31)
1. Collect W-9s for anyone you paid $600+
Did you pay anyone over $600 for services this year? (photographers, second shooters, VAs, designers, etc.)
Your CPA/bookkeeper will need these to file 1099s by Jan 31.
2. Save receipts and notes for big purchases and travel
Especially for gear, coaching, editing software, conferences, and retreats.
Include the date, amount, and business purpose for each and your tax pro will love you!!
3. Review where you got paid this year
Stripe, PayPal, HoneyBook, Shopify, Square, etc.
Make sure you’re connected to your business bank and all processors are working properly so you don’t forget anything in January.
4. Confirm your owner’s pay for the year (especially S Corps)
If you didn’t pay yourself regularly as an S Corp, you might need a December catch-up payroll run. Ask your CPA or bookkeeper now.
5. Make any final business purchases you want deducted in 2025
A common tax strategy is spending a little more at the end of year so your taxable income is lowered → lower taxes due
It’s so important to plan on this ahead of time! The deadline is December 31. But please please please buy what truly helps your business! and don’t buy just for the write-off.
Do this in January (Once December is closed)
1. Export your income reports
Wait until January to grab your full-year reports from Stripe, PayPal, HoneyBook, Dubsado, etc.
Double-check for “hidden” income like Venmo, affiliate payouts, or checks (if you’re a client too!)
2. Pull your Profit & Loss + Balance Sheet
Grab your full-year Profit & Loss statement and Balance Sheet statement
If you DIY, Most software like QuickBooks or Xero lets you download these in seconds
If you use a spreadsheet, it is trickier to create a balance sheet, but here are basic steps to create a Profit & Loss statement:
List out all your income totals minus direct cost = gross profit minus costs to operate business = net profit
Voila!
If you’re a client, these will be in your portal in January and we will have a year-end meeting!
3. Grab payroll reports
Gusto, ADP, or whoever runs your payroll
If you’re an S Corp, your CPA needs these to finalize W-2s and your salary vs. distribution totals
Total up owner distributions
If you transferred funds to yourself outside of payroll, list the dates and amounts. This helps your CPA stay accurate
Bonus Tip:
Create a folder called “2025 Tax Documents – [Your Biz Name]” in Google Drive or Dropbox.
Drop in everything as you get it (income reports, W-9s, receipts, etc.)
Name things clearly, like “01/2025 PAYPAL.pdf” or “W9 - JANE DOE.pdf.”
You’ll feel so on top of it!
Cheering you on, always
xo,
Lika Shim
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