Five jobs need to be done before December 31. They are contractor forms, equipment, inventory, company meeting notes, and year-end balances. Here is how to finish each one.
Why do it now?
Some papers cannot be made later. Waiting also makes each job harder. An hour spent now can save you a lot of stress in March.
Contractors: a new $2,000 rule
A contractor is someone you pay who is not your worker. The rule for sending them a 1099 form has changed. For pay made in 2026, you send a Form 1099-NEC or 1099-MISC for $2,000 or more. It used to be $600. Chasing papers gets harder after the year ends.
Get a signed Form W-9 from each contractor you paid $2,000 or more.
Ask for any missing W-9s now, while the contractor still wants to hear from you.
Forms 1099-NEC are due February 1, 2027.
Equipment and loans
You can only deduct equipment this year if two things are true. You must own it. And it must be placed in service by December 31. That means it is delivered, set up, and ready to use. A deposit on equipment that shows up in January does not count for this year. Buying something big? Plan the delivery date, not just the payment date.
Papers prove both facts. The title, delivery papers, and loan papers matter as much as the payment. Send us the invoice and the loan or lease papers for anything you got this year.
The tax break can be big. For 2026, you can deduct up to $2,560,000 of equipment cost at once. This is called Section 179. The limit starts to shrink when you buy more than $4,090,000 of equipment. For heavy SUVs, the cap is $32,000. Also, 100% bonus depreciation is now permanent for items you got after January 19, 2025. What we can claim depends on the date you got the item and the date you started using it.
Inventory: count it
Count your inventory by hand at year-end. Keep the count sheets. Then tell us the total cost of everything on hand on December 31, 2026. Do not include goods you hold for someone else (called consignment). If you are ever audited, you must show the count sheets. A guess will not work. Plan a day for the count.
Company meeting notes
S corporations and C corporations must keep yearly meeting notes. These are called minutes. An LLC usually does not need them. We do not keep them for you. The officers of the company do. Write them while the year is fresh in everyone's mind.
Your year-end checklist
Get W-9s from contractors paid $2,000 or more
Collect invoices and loan or lease papers
Check that equipment is owned and in use by December 31
Count inventory and keep the sheets
Write up this year's company minutes
Gather your December 31 balances
Sign and return your engagement letter
Questions? Call us. It is much easier to fix things in December than in March.
Ready to Hand Off Your Books?
We help small business owners move from DIY bookkeeping to clean, accurate books they can actually trust.
Request your free financial review and see what a bookkeeper could take off your plate.
This article is for general information only. It is not financial or tax advice. Talk with a professional about your specific situation.