The honest truth is that tax season preparation should happen all year long. But for most small business owners, especially in the trades and construction, it doesn’t. If you’re reading this, there’s a good chance your books are behind and you’re not sure where to start. That’s okay. Here’s what to focus on.

First, get your books caught up and reconciled. This means every bank account and credit card tied to the business should be accounted for through December 31. Every transaction categorized, every month reconciled. If you’ve been dumping receipts in a shoebox or ignoring QuickBooks all year, this is the step that takes the most time but matters the most. Without accurate books, your tax return is based on guesswork, and guesswork means you either overpay or you trigger problems with the IRS. If you’re months or years behind, catch-up bookkeeping is the fastest way to get everything current before your filing deadline.

Second, gather your income documents. If you received payments from customers or general contractors who will be sending you 1099s, those should start arriving by the end of January. Compare them against what your books show. Discrepancies happen and they’re easier to resolve now than after you’ve filed. If you paid subcontractors $600 or more during the year, you need to issue them 1099s by January 31. Missing this deadline means penalties.

Third, review your expenses for anything you may have missed. Mileage is the big one for trades and service businesses. If you didn’t track mileage throughout the year, go back through your calendar or job records and reconstruct what you can. Tools, materials, insurance premiums, licensing fees, phone bills, vehicle costs. Go through your bank and credit card statements line by line. That $150 charge you forgot about in March might be a deductible business expense.

Pull together documentation for any large purchases. If you bought a truck, trailer, equipment, or tools, you’ll need the purchase date, amount, and whether it was financed. These assets can often be deducted in full in the year of purchase under Section 179, but your accountant needs the details to make the right call.

Separate personal from business if things got mixed during the year. Charges on a personal card for business purposes still count as deductions, but they need to be identified and documented. Same goes the other direction. Personal expenses paid from a business account need to be pulled out so they don’t inflate your deductions.

Review any estimated tax payments you made during the year. If you paid federal or California estimated taxes quarterly, confirm the amounts and dates. These reduce what you owe at filing time, and missing one from your records means you could accidentally double-pay.

Finally, don’t wait until April to talk to your accountant. The earlier you start, the more time there is to find savings and fix problems. A CPA for construction businesses who knows your industry can look at your full-year numbers and make recommendations you wouldn’t catch on your own. Waiting until the last minute means you’re filing to meet a deadline, not filing to minimize what you owe. Those are two very different outcomes.