Year-End Tax Checklist for Texas-Based Businesses

Tax Planning

Year-End Tax Checklist for Texas-Based Businesses

Posted on July 7, 2025 by Admin

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.

✔️ 1. Organize & Reconcile Your Financial Records

Use accounting software like QuickBooks Online or Zoho Books to reconcile bank statements, credit cards, and vendor accounts.

Ensure transactions are properly categorized—especially deductible ones. See our full guide on 2025 Tax Deductions for help.

✔️ 2. Review Year-to-Date Financial Statements

Ensure accuracy in your Profit & Loss Statement, Balance Sheet, and Cash Flow Statement. Look for red flags like unexplained expenses or missing revenue.

✔️ 3. Calculate Estimated Tax Payments

Have you made all four quarterly payments? Use IRS Form 1040-ES and make final adjustments now to avoid penalties in Q1 2026.

✔️ 4. Maximize Your Deductions

Now’s the time to invest in deductible business expenses—equipment, marketing, retirement plans, and more. See our Tax Saving Strategies blog for ideas.

✔️ 5. Submit Payroll Reports & W-2s

Verify payroll records, bonuses, and withholdings. Prepare W-2s for employees and 1099s for contractors—due to the IRS by Jan 31, 2026.

✔️ 6. Conduct Year-End Inventory Count

If applicable, reconcile physical stock with your books. This ensures accurate COGS (Cost of Goods Sold) reporting.

✔️ 7. Review Retirement Plan Contributions

Make final contributions to SEP IRAs, Solo 401(k)s, or SIMPLE IRAs. These are powerful tax-reduction tools, often overlooked by business owners.

✔️ 8. Backup and Archive Financial Data

Store copies of bank statements, invoices, receipts, payroll reports, and tax filings. Keep records organized for at least 3–7 years.

✔️ 9. Schedule a Year-End Tax Strategy Call

Meet with a licensed CPA in Texas to catch potential red flags and finalize deductions. We’re here to help—book your free consultation today.

FAQs

Q: Do I need to file state income tax in Texas?

A: No. Texas has no personal or corporate income tax. However, state sales tax and franchise tax filing are still required.

Q: What are the most commonly missed deductions?

A: Business use of your home, startup costs, depreciation, and tax planning fees are often overlooked. Learn more in our Small Business Tax Deductions Guide.

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.

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