The landscaping industry faces the same year-end accounting requirements as any other business. January is crunch time for business owners. With key tax forms due by January 31, now is the moment to finish year-end bookkeeping and get tax-ready.
Close the Books
Reconcile all bank accounts, credit cards, and loans through December 31, 2025. Record any outstanding bills, invoices, and accrued expenses that belong to 2025. Post depreciation, amortization, and inventory adjustments to reflect your true year-end position. Review and clean up your chart of accounts and expense classifications to ensure your financial statements are accurate and meaningful. Finally, verify that payroll, sales tax, and payroll tax accounts are properly balanced before moving forward.
Prepare Payroll Reporting
Deadline: February 2, 2026 (since January 31, 2026 falls on a Saturday, the deadline extends to the next business day)
Start by confirming all employee information is current and correct, including names, addresses, and Social Security numbers. Reconcile total payroll figures with withholdings and employer taxes for the year. Then prepare and carefully review W-2s and the W-3 transmittal form to catch any errors before filing.
Prepare Contractor Reporting this section changed
Deadline: February 2, 2026 (since January 31, 2026 falls on a Saturday, the deadline extends to the next business day)
Review your vendor list to identify which contractors require 1099 forms. This typically includes specialized subcontractors like irrigation specialists, arborists, freelance designers, or independent snow removal operators. Generally, if you paid an unincorporated contractor $600 or more for services during 2025, you'll need to issue a 1099-NEC.
Verify that you have W-9s on file for each eligible contractor — missing W-9s can create compliance issues. Reconcile all contractor payments for the year, then prepare 1099-NECs for non-employee compensation and 1099-MISCs for other reportable payment.
If you file 1099s in QuickBooks Online, January 28 at 5 PM PST is the deadline to send taxpayer copies on time.
Submit Accounting Records to Your Tax Preparer
Once you've closed the books and distributed W-2s and 1099s, provide your complete accounting records, whether paper or digital, to your CPA or tax preparer. The cleaner and more organized your records, the more efficient the tax filing process will be.
Completing these steps ensures accurate reporting, compliance with IRS deadlines, and a faster, more efficient tax filing process for 2025. Do you have these important dates on your calendar?