Year-End Tax Checklist for Texas-Based Businesses

As 2025 draws to a close, Texas business owners should start preparing their books, reviewing deductions, and ensuring compliance with the IRS and the Texas Comptroller. This year-end tax checklist will help you close out strong and set up a smooth financial start for 2026.

Year-End Tax Checklist for Texas Businesses

• 1. Organize & Reconcile Financial Records

   

  Use tools like QuickBooks or Zoho Books to reconcile your accounts and ensure deductible transactions are properly categorized. See our Tax Deductions Guide for help.

• 2. Review Year-to-Date Financial Statements

   

  Check your Profit & Loss, Balance Sheet, and Cash Flow reports. Spot red flags like unclassified expenses or missing income.

• 3. Calculate Estimated Tax Payments

   

  Ensure you’ve made all four IRS Form 1040-ES payments. Adjust now to avoid Q1 2026 penalties.

• 4. Maximize Your Deductions

   

  Now’s the time to invest in deductible items like equipment or retirement plans. Check our 2025 Tax Saving Strategies.

• 5. Submit Payroll Reports & W-2s

   

  Verify payroll, bonuses, and withholdings. Send W-2s/1099s before the IRS deadline: Jan 31, 2026.

• 6. Conduct Year-End Inventory Count

   

  If applicable, reconcile physical stock with books to ensure accurate COGS reporting.

• 7. Review Retirement Plan Contributions

   

  Make last-minute contributions to SEP IRAs, Solo 401(k)s, or SIMPLE IRAs to lower 2025 taxes.

• 8. Backup and Archive Financial Data

   

  Save all reports, receipts, statements, and tax filings securely. Retain records for at least 3–7 years.

• 9. Schedule a Year-End Strategy Call

   

  Meet with a licensed CPA in Texas to catch red flags and finalize deductions. Book your free consultation.

Conclusion

Ahead-of-time preparation is key to maximizing your tax savings and avoiding costly penalties. Follow this year-end checklist, consult your CPA, and start the new year with a clean financial slate.