What Financial Reports Do I Need Ready by January 31 for Tax Season?

For many small-business owners, tax season feels less like a deadline and more like a countdown clock. 

January 31 arrives fast, and without the right financial reports prepared early, the process becomes stressful, expensive, and prone to errors. 

But when you know exactly what to gather, tax season becomes far more manageable and predictable.

Below is a clear guide to the essential financial reports you should have ready by January 31 — the same reports accountants, tax pros, and fractional bookkeepers consider non-negotiable.

1. Profit and Loss Statement (Income Statement)

Your Profit and Loss (P&L) summarizes total revenue, expenses, and net income for the year. 

It’s the foundation of nearly every tax filing because it shows the IRS – and your tax preparer — how your business actually performed.

Why it matters:

• • Identifies taxable income
  • Highlights deductible expenses
  • Ensures you’re not missing cost categories

2. Balance Sheet

If the P&L shows business performance, the Balance Sheet shows financial stability. It lists assets, liabilities, and equity as of December 31.

Why it matters:

• • Supports loan interest deductions
  • Helps reconcile depreciation schedules
  • Verifies owner draws, retained earnings, and debt balances

Tax professionals often use the Balance Sheet to catch mistakes you might not notice — miscategorized expenses, unreconciled accounts, missing depreciation entries, and more.

3. Cash Flow Statement

While not always required, having a Cash Flow Statement ready by January 31 gives your accountant a complete view of operating, investing, and financing activities.

Why it matters:

• • Helps identify cash-based expenses or income
  • Highlights timing differences between when income was earned vs. paid
  • Increases accuracy for accrual-to-cash adjustments

4. Year-End Bank and Credit Card Reconciliations

If your accounts aren’t reconciled, your financial statements aren’t reliable. By January 31, every bank, credit card, and loan account should match your year-end statements.

Why it matters:

• • Ensures no missing income or expenses
  • Prevents duplicate transactions
  • Confirms beginning and ending balances for tax filings

This is also one of the most common pain points for DIY bookkeepers — one that BELAY’s bookkeeping clients frequently hand off so they can start tax season with confidence rather than correction.

5. Accounts Receivable & Accounts Payable Aging Reports

If you invoice clients or pay vendors, your A/R and A/P aging reports provide a clear picture of outstanding income and expenses as of year-end.

Why they matter:

• • Necessary for accrual-method taxpayers
  • Helps your CPA make revenue and expense adjustments
  • Supports accurate deduction and income timing

6. Payroll Reports & 1099/ W-2 Documentation

By January 31, payroll-related reporting becomes time-sensitive. You’ll need:

• • Annual payroll summary
  • Employee W-2s
  • Contractor 1099-NECs
  • Payroll tax filings

Why it matters:
These reports tie wages, taxes, and contractor payments to what’s filed with the IRS, reducing audit risk and ensuring compliance.

If you pay contractors, your 1099s must be filed by January 31, so having this paperwork ready is essential.

7. Fixed Asset & Depreciation Schedules

If you purchased equipment, vehicles, furniture, or technology this year, you’ll need an updated fixed asset list.

Why it matters:

• • Supports Section 179 and bonus depreciation decisions
  • Helps your CPA calculate asset life and write-offs
  • Prevents missed deductions or overstated income

Many small businesses overlook this step — one reason accountants frequently ask for it after the fact.

8. Prior-Year Tax Return

While not a “report,” your previous year’s tax return helps ensure continuity from year to year. Your CPA will use it to confirm depreciation, carryovers, elections, and bookkeeping consistency.

Simplify Tax Season With the Right Support

Gathering these reports by January 31 doesn’t just streamline tax preparation. It gives you a clear, trustworthy picture of your business’s financial health. 

And if organizing this feels overwhelming, that’s exactly where a BELAY bookkeeper can step in. 

Our team helps clients close their books accurately, prepare every required statement, and hand off clean, audit-ready financials to their CPA, saving hours of stress and reducing costly mistakes.

Ready to start tax season confident and prepared? BELAY can help you get there.