7 Things Every Creator and Small Business Should Do Before Filing Taxes This Year

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Tax season can sneak up fast—especially if you’re juggling content creation, client work, or product sales alongside your regular business duties. Whether you’re a YouTuber, freelance designer, Etsy seller, or small business owner, tax prep shouldn’t be something you leave until the last minute.

That’s why strong bookkeeping habits matter year-round, not just in April. With just a few focused steps, you can reduce your audit risk, avoid missed deductions, and make filing your business taxes less stressful. Here are seven things every creator and small business should do before submitting their return this year.

1. Organize your income records

Your first step is ensuring you have a complete and accurate record of all your income. Make sure you save receipts and documentation for all of the following and organize them using your self employed bookkeeping software:

• Payments from clients
• Sales from online platforms (Shopify, Amazon, Etsy, etc.)
• Affiliate and ad revenue (like Google AdSense or Amazon Associates)
• Sponsorships and brand deals
• Peer-to-peer payments (PayPal, Venmo, CashApp)

Even if you don’t receive a 1099 form for some income sources, the IRS still expects you to report them. Build your own income log as you bring in revenue, then cross-check it against any forms you receive, such as 1099-NEC or 1099-K. (More on these in a minute.)

2. Separate business and personal expenses

If you haven’t already opened a business checking account or credit card, it’s time. Mixing business and personal transactions can make tax time chaotic and increase your risk of an audit.

For any mixed-use accounts you’ve used during the tax year, go through each transaction and tag whether it was personal or business-related. Some common business expenses include:

• Advertising and marketing
• Website hosting or software subscriptions
• Equipment purchases (laptop, camera gear)
• Contractor payments
• Professional development (courses, webinars)

Document each expense with a receipt or invoice. Going forward, a dedicated account and regular expense reviews will simplify your self-employed bookkeeping and tax prep.

3. Track deductible mileage and travel

If you drive for business—whether to a client meeting, shoot location, or supply run—you may be able to deduct your mileage. The IRS standard mileage deduction rate for 2024 is 67 cents per mile.

To document mileage and get the deduction, you’ll need:

• A mileage log that includes the date, destination, purpose, and number of miles
• Your vehicle’s starting and ending odometer readings for the year
• A clear distinction between business and personal use

If you’ve taken business-related trips that included airfare, lodging, or meals, make sure those are well-documented, too. Keep all receipts and note the business purpose of the trip. To be tax deductible, business travel expenses must be “ordinary and necessary,” so make sure you don’t include any expenses that were purely for personal enjoyment.

4. Reconcile your 1099s of all kinds

Many creators and small businesses now receive multiple 1099 forms from different platforms and clients. The most common are:

• 1099-NEC: For freelance or contractor payments over $600
• 1099-K: For payment processor income (like PayPal or Stripe) over $5,000
• 1099-MISC: For commercial rent, royalties, and other specific payment types

Even if you don’t receive a form, you must still report the income. Reconcile what’s reported to you with your own income tracking and invoices to verify that the 1099s are correct. Errors do happen, and the IRS will hold you responsible for correcting discrepancies—not the sender of the form. If something seems off, reach out to the issuer to request a corrected form before you file.

5. Max out deductions and credits you qualify for

This is where being proactive can save you money. Many creators and small businesses miss out on business expense deductions simply because they don’t realize they qualify. Be sure to explore deductions for:

• Home offices, if you use a space in your home exclusively for business
• Self-employed health insurance
• Startup costs, if you launched your business this year
• Business insurance premiums
• Education and training costs, if directly related to your business

Also check whether you qualify for any tax credits, such as the Retirement Savings Contributions Credit (Saver’s Credit) or credits related to hiring. These can directly reduce your tax bill, not just your taxable income.

6. Review prior-year carryover losses

Some tax breaks don’t expire if you didn’t use them fully last year—you might still be able to apply them this year. These are called capital loss carryovers, and they can potentially reduce what you owe.

Generally, if your business lost money in a previous year, you can only deduct up to $3,000 of the loss from your taxable income per year. However, you may be able to “carry over” that loss and deduct it on the following year’s taxes until it’s depleted. See the IRS carryover rules for more information.

Not every tax software product handles carryover losses automatically, so make sure you’re getting all the deductions that you’re entitled to. If you’re unsure, or if you didn’t prepare last year’s return yourself, it’s a good idea to ask a tax professional to review it with you. You don’t want to leave valuable deductions on the table, but you also need to make sure you’re using them correctly.

7. Decide whether to DIY or hire help

Filing your own taxes can save money, but it depends on how complex your business has become. If any of these apply to you, it might be time to bring in a professional:

• Earn income from multiple platforms
• Manage contractor payments or payroll
• Have business expense deductions you’re unsure how to handle
• Changed business structures recently

Local accountants or a tax preparer familiar with creators and small businesses can help you avoid costly mistakes and offer advice for better tax planning next year.

Still planning to DIY? Take advantage of tax education resources and walk through every section of your tax form carefully using the provided IRS instructions. The more familiar you are with the relevant forms, the more effectively you’ll be able to minimize your tax bill while staying compliant.

Filing your taxes doesn’t have to be overwhelming, especially if you take a step-by-step approach and build good habits throughout the year. Whether you’re a full-time creator or running a side hustle, these tax prep steps will help you stay compliant, uncover valuable deductions, and approach tax season with confidence.