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by TaxJar December 1, 2025
Tax season for many is coming to a close with deadlines around the corner. For many others a rush to getting tax-ready and compliant with IRS recordkeeping requirements has just begun. For those of you out there thinking of potential late fees, surprises, and a successful tax return, here’s a guide from our friends at Bench .
Bench was started so you wouldn’t have to do your own catch up bookkeeping . But for the do-it-yourselfers, this step-by-step guide will help you get through your bookkeeping backlog in no time.
Start by collecting all receipts and invoices related to your business expenses. There are many different types, so we’ll outline the most important ones.
Important to note: Vendor accounts include bills for business activities that are still currently operating in your business’s closing period.
Reconciling your bank records accomplishes two things: 1) It ensures you don’t miss any business expenses or important records from Step 1, and 2) It helps you catch any mistakes your bank may have made. You can do this by comparing each transaction from your bank statement with the same transaction in your company accounting records. If the transactions don’t match, identify and fix any errors to ensure they balance out.
Keeping your personal and business expenses in the same account is known as piercing the corporate veil —which may result in you being held personally liable for your business’s debt and actions. The sooner you separate your business and personal expenses, the better. Learn how to open a small business bank account and keep your finances separate .
If you’re unsure about whether a purchase qualifies as a deductible business expense, learn how the IRS differentiates personal and business expenses .
If you haven’t done so already, there are countless benefits to making your business paperless . As you process your paperwork, create digital records of receipts and important documents. Here are a few of our favorite tools to help you go paperless:
If you paid independent contractors and/or employees during the tax year, there’s a good chance you’ll need to file the following forms:
When you’re a small business, doing it yourself is often the least expensive option. But tax professionals can help eliminate errors, help you claim all of the deductions available to your business—which may end up saving you money in the long run—and can also represent you in the event of an audit. Developing a relationship with a financial pro, well before you need their help, will prevent last-minute scrambling and bring you peace of mind that your books are in order.
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