By Karen M. Schott, Senior Accounting Analyst
As we embark on the second half of 2025, now is the perfect time to perform a mid-year review of your QuickBooks Online file. Staying ahead of year-end tasks in QBO will help ensure a smooth tax filing season and reduce stress for both you and your accountant. Here are a few essential tasks to tackle in QBO:
Upload and Attach Invoices & Receipts
If you have not done so already, take time to gather all invoices and receipts from throughout the year. Review your QBO file and:
- Upload missing receipts for expenses, especially any cash purchases
- Match receipts to transactions
- Use the mobile App to snap photos of receipts
Why it matters: These documents are vital for supporting your tax deductions in the event of an audit. Keeping them attached to transactions in QBO provides easy access.
Collect W-9s from Contractors & Vendors
If you have paid any independent contractors or vendors $600 or more during 2025, you may be required to file Form 1099 for them. Prepare ahead of time and:
- Obtain a completed W-9 from each contractor or vendor
- Verify that the Tax ID number (TIN) and complete address are entered correctly in QBO
- Attach the completed Form W-9 to the vendor profile for easy access
Tip: Use QBO to send W-9 requests and track who has responded. Do not wait until January!
Reconcile Your Accounts
Make sure your bank and credit card accounts are reconciled monthly and are up to date. This ensures that your accounting records match your statements and helps prevent reporting errors.
Categorize & Review Transactions
Go through your uncategorized or unreviewed transactions now, rather than scrambling at the end of the year. Proper categorization helps your tax advisor maximize deductions and minimize audit risk.
Schedule a Mid-Year Review
Consider scheduling a brief mid-year meeting with your bookkeeper or tax advisor to resolve any lingering questions and to tie up loose ends to ensure your financials are tax ready.
Final Tip: Do not wait until January to get organized. Starting now gives you time to request and obtain any missing documents and correct potential errors.
If you have questions or need help gathering documents in QuickBooks Online, feel free to reach out to Tronconi Segarra & Associates. We are here to help make your tax season as smooth as possible!