If you previously struggled to find important documents or compile financial data:
✅ Keep personal and business finances separate. If your finances were mixed this year, set up a business bank account to keep business and personal separate next year. Find out if you’re eligible for HoneyBook Balance.
✅ Use a bookkeeping software to help you track income and expenses to make sure you don’t miss any tax-deductible deductions you might qualify for. Pro tip: HoneyBook integrates with QuickBooks Online.
✅ If you’re using HoneyBook for all your client management needs, keeping all your invoicing and payments within HoneyBook will also allow you to populate various reports you’ll need at tax time with HoneyBook Tax Hub
✅ Set up a "Tax Prep" folder: Create a simple system now that works for you—whether it's digital folders on your computer or physical folders labeled by category
✅ Scan and save receipts immediately instead of letting them fade away in your wallet. You may also do this through the QuickBooks app on the go, or by creating a folder by tax year, for example, “2025 Receipts,” within your email to file away emailed receipts.
✅ File important forms such as receipts for estimated tax payments, W-2s, and 1099s. Storing these year-round as they become available will help you avoid a massive year-end scramble.
✅ Keep track of your home office deductions and business mileage expenses—these are usually left for the end and missed since they’re not simply transactions that run through your business bank account

✅ Start thinking about 1099s that may need to be issued next January. Pro tip: You may be responsible for providing your contractors with a Form 1099-NEC at the end of the year. Obtaining a W-9 form from each of them prior to issuing payment will facilitate this process. If the contractor was paid via credit card or credit card processor like Stripe, you as the small business owner may not be responsible for providing the contractor with a Form 1099-NEC, as they might receive one from the credit card processor.

Talking to your tax accountant early on will help you be better prepared throughout the year:
✅ Review your recent tax return or talk with your tax accountant and identify if any deductions or credits were overlooked or may not have applied last year but may apply this year, as well as some strategies to reduce future tax liability
✅ If you anticipate any significant life events this year such as marriage, birth of a child, job change, home purchase, or increase or decrease in income, understanding how these events might impact your taxes and what documentation you'll need to track going forward will be extremely helpful year-round

✅ If your tax situation is complex, consider consulting with a tax professional. They can provide personalized advice and keep you informed of any relevant legislative updates as well.

If you didn’t make any estimated tax payments this past year, and caused an underpayment penalty or got left with a tax liability:
✅ Set up a system: This can be as simple as a separate bank account with automatic monthly transfers to it from your operating bank account for quarterly estimated tax payments

✅ Stay on schedule: Make sure you understand the quarterly payment deadlines and plan accordingly to avoid penalties

Electing to be treated as an S corporation could lower your tax burden by allowing you to pay yourself a reasonable salary while taking additional profits as distributions. See if it’d be a good fit and what documents and deadlines you should be aware of for the next tax season.

Tax-advantaged accounts such as SEP IRAs, solo 401(k)s, or traditional IRAs are ways to reduce taxable income
✅ Review your contributions and consider increasing them if possible for the upcoming year

✅ Maximize contributions: Understand the annual contribution limits for these accounts and aim to maximize them if your financial situation allows

There might be credits and deductions you could qualify for. Educating yourself early on will help you ask more relevant questions and potentially save money come tax time. Below are a few examples:
✅ Self-employment tax deduction: Half the self-employment tax is deductible from your gross income when calculating your income tax, which helps reduce your overall tax burden

✅ Qualified business income (QBI) deduction: Deduct up to 20% of your qualified business income

✅ Retirement plans startup credit

✅ Child and dependent care tax credit

✅ Child tax credit