Collaborating with your accountant throughout the year rather than just for tax return preparation is the key to a low stress tax season. Although many business owners focus primarily on minimizing liability, the most effective approach is to make strategic financial decisions in real time alongside a tax professional. By staying both proactive and organized, you’ll set yourself up for smoother filing and more confident decisions throughout the year.
No matter your circumstances, when discussing your options with your tax advisor, make sure to go into the new season prepared. Here’s how:
Understand key OBBA changes that may affect your business
On July 4, 2025, the One Big Beautiful Bull Act (OBBBA) went into effect, introducing sweeping changes to current business tax rules. The legislation eliminates certain incentives, extends others, and makes several provisions from the Tax Cuts and Jobs Act (TCJA) permanent. Knowing how these updates apply to your business can help you plan ahead, optimize deductions, and avoid last-minute surprises.
Your tax partner will already be familiar with these updates, but here’s a high-level overview of notable changes to be aware of. Keep in mind that additional rules, limitations, and special circumstances may apply — consult your accountant if you’d like guidance tailored to your specific situation.
Key updates include:
- Permanently expands the TCJA’s 20% Sec. 199A qualified business income deduction
- Permanently allows 100% bonus depreciation for qualified assets acquired after Jan. 19, 2025
- Creates a 100% deduction for “qualified production property” placed in service after July 4, 2025, and before 2031
- Increases the Sec. 179 expensing limit to $2.5 million and the phaseout threshold to $4 million for 2025, with inflation adjustments going forward
- Increases the cap on business interest deductions beginning in 2025 by excluding depreciation, amortization, and depletion from adjusted taxable income
- Permanently allows immediate deduction of domestic research and experimentation expenses
- Makes permanent and modifies the employer credit for paid family and medical leave
- Eliminates most clean energy tax incentives after 2025; the qualified commercial clean vehicle credit ends Sept. 30, 2025
Keep thorough, year-round records
Consistent recordkeeping during the year streamlines tax filing and helps maintain accuracy. Monitoring income and expenses regularly gives you a clearer picture of your business’s financial health, allowing you to anticipate lean periods and fully capitalize on profitable ones. Good habits also make it far easier for your accountant to identify opportunities and catch potential issues early.
Throughout the year, make sure your business has thorough records of:
- All income, including invoices, and receipts
- Expense receipts for supplies, utilities, rent, and any other operational costs
- Payroll records, including payroll tax filings
- Tax documents, including quarterly tax payments, and any prior year’s tax notices that may be relevant
- Bank and credit card reconciliations and related work papers
- Contracts, leases, and agreements
- Travel, transportation, entertainment, and gifts
- Any assets owned by the business
In addition to tracking income and expenses, make sure you also stay aware of any regulatory or tax law changes that may impact your business throughout the year. Keeping a running list of these changes — and discussing them with your tax partner — helps you proactively adjust your strategy, ensuring you’re interpreting these updates correctly and taking advantage of all available opportunities.
Gather all forms and documentation
To prepare your 2025 business tax return, gather all relevant financial records and supporting documentation from the year. Advance preparation not only expedites the filing process but also reduces the chances of errors or omissions that can delay your return. By keeping everything organized, your accountant will more easily be able to verify details and maximize eligible deductions.
Key documents include:
- Balance sheet, income statement, and cash flow statement
- Year-end general ledger account detail
- Transactional documents
- Mileage logs (if relevant)
- Business expense summaries (supplies, operations, marketing, insurance, legal, travel, entertainment, equipment, education, licenses)
- Employee and non-employee tax forms (W-2s and 1099s)
To avoid headaches in the case of an audit, be sure to keep proof of expenses for deductions or credits and always separate personal and business costs. If you're unsure about where any of your expenses fall, contact your accountant for clarification; it’s better to confirm now than correct later.
Digital payments and e-filing for faster processing
Starting Sept. 30, 2025, the IRS transitioned to digital-only tax refunds and payments, with very limited exceptions, to speed up processing times and minimize risks associated with paper checks. Tax refunds will primarily be sent via direct deposit.
For electronic payments, corporations and foundations must create an Electronic Federal Tax Payment System (EFTPS) account or use DirectPay. Trusts must create an EFTPS account. It’s important to create online payment accounts now, as it could take weeks to finish setup because of identity verification steps and potential IRS backlogs. Find step-by-step instructions on our Tax Planning Guide page
If your business already keeps electronic financial records, filing and paying taxes electronically is one of the most efficient ways to complete your return. It also enables easier data sharing with your accounting team, making your overall workflow smoother and more secure.
Check out our blog series below to learn more about how the changes in the One Big Beautiful Bill Act could impact your business’s taxes this year. And reach out to your Mowery & Schoenfeld tax advisor if you have questions.
READ MORE: How the new tax law affects businesses
READ MORE: R&D tax credits: What OBBBA means for your business
READ MORE: Depreciation expensing changes in the One Big Beautiful Bill Act
READ MORE: Qualified Small Business Stock rules under OBBBA
READ MORE: OBBA’s state and local tax (SALT) changes, explained
READ MORE: What’s changing? The OBBBA’s impact on clean energy credits