Quick answer: Before January, a founder needs eight things in hand: reconciled books through December 31, reviewed full-year financials, contractor and payroll data for January filings, funding records that tie to the cap table, a tax preparer handoff, a cash runway number, a 2027 budget, and a named owner for the 2027 close.
Key takeaways
- January, not December 31, is the real deadline: 1099s, W-2s and your tax preparer all need closed books.
- For 2026 payments, the 1099-NEC threshold is $2,000, up from $600.
- Founders should own decisions, not preparation. Six of the eight items can be delegated.
- Start in October so Q4 is for catch-up and January is for the close.
You built the business. You shouldn’t have to spend December fixing your books.
But that’s how year-end goes for most founders. The holidays arrive, the team slows down, and suddenly there’s a list: W-9s to chase, a tax preparer asking for final numbers, an investor update that needs a full-year P&L, and a balance sheet nobody has looked at since spring.
None of it is hard on its own. It’s hard because it all lands at once. Here’s what you need ready before January, when it’s due, and which parts you can hand off.
Why is January the real year-end deadline?
December 31 is when the year ends. January is when everything that depends on it comes due.
In the first weeks of the new year, contractor and payroll forms are due, your tax preparer needs final numbers, investors expect a year-end update, and your 2027 plan needs a starting point. All of that runs on closed, reconciled 2026 books. If the books aren’t ready, everything downstream waits.
What are the key year-end tax deadlines for startups?
| Deadline | What’s due | Who it applies to | Source |
|---|---|---|---|
| January 15, 2027 | Q4 2026 estimated tax payment | Founders and owners who pay estimated taxes | IRS: Estimated taxes |
| February 1, 2027* | Form 1099-NEC to contractors and the IRS | Any business that paid a contractor $2,000 or more in 2026 (up from $600) | IRS: About Form 1099-NEC |
| February 1, 2027* | Form W-2 to employees and the SSA | Any business with employees | IRS: About Form W-2 |
| March 1, 2027 | Delaware franchise tax and annual report | Delaware corporations | Delaware Division of Corporations |
| March 15, 2027 | Partnership (1065) and S corporation (1120-S) returns | Partnerships, multi-member LLCs and S corps | IRS: Business taxes |
| April 15, 2027 | C corporation return (1120) | Calendar-year C corporations | IRS: About Form 1120 |
*The usual January 31 deadline falls on a Sunday in 2027, so it moves to Monday, February 1. Confirm your specific deadlines with your tax professional.
Not sure if your books will be ready in time? Score them with the free 2026 Year-End Finance Checklist.
What do founders need ready before January?
Founders need eight things ready before January. Each one depends on the one before it, so work through them in order.
1. Reconciled books through December 31
Every bank, card, loan and payment processor account matched to its statement, with nothing left uncategorized.
This is the foundation for everything else on this list. If you’re months behind, start with catch-up bookkeeping now. For the full task list, see the Year-End Close Checklist for Startups.
2. Full-year financial statements you’ve actually reviewed
A full-year P&L, balance sheet and cash flow statement, reviewed by you and by whoever owns your books.
Reviewed is the key word. Founders often receive these reports and never read them. Spend an hour with them before they go to investors or your tax preparer. If a number surprises you, ask about it now, not in March.
3. Contractor and payroll data for January filings
A W-9 on file for every contractor you paid in 2026, contractor payment totals by person, and payroll reports that tie to your books.
This is the most avoidable year-end scramble. Collect missing W-9s in November, when contractors are responsive, not in the last week of January. The 1099-NEC threshold rose to $2,000 for 2026 payments, but collecting a W-9 from every contractor is still the safe default.
4. Funding records that tie to your cap table
Every SAFE, convertible note and equity round raised in 2026, recorded correctly in your books, with amounts that match your cap table.
Funding is often recorded as a single deposit and never revisited. Investors, auditors and future acquirers will check that your books and your cap table tell the same story.
5. A tax preparer handoff by mid-January
Your reconciled books, full-year financials, payroll reports, funding documents and any notes on unusual transactions, sent to your tax preparer as one package.
Tax preparers work in order of who’s ready. A complete handoff in mid-January gets your return worked on early. An incomplete one in March gets a question list and, often, an extension.
6. A cash runway number you trust
How many months you can operate at your current burn, based on closed books, not a bank balance.
Runway calculated from unreconciled books is a guess. Closed December books give you the real starting cash and the real monthly burn, which is the number your board and your hiring plan depend on.
7. A 2027 budget or forecast
A month-by-month plan for revenue, headcount and spending in 2027, built from your actual 2026 results.
It doesn’t need to be perfect. It needs to exist before January ends, so you have something to measure the year against. A budget built on unclosed books inherits every error in them.
8. A named owner for the 2027 close
One person or team responsible for closing the books every month in 2027, not just recording transactions.
This is the item that decides whether next December looks like this one. Bookkeeping records the numbers. Someone still needs to review them, book adjustments and sign off each month. For how those roles differ, see our controller vs. bookkeeper guide.
Which year-end tasks can founders delegate?
Most of this list doesn’t need you. Here’s what to keep and what to hand off:
| Item | Founder’s job | Delegate to |
|---|---|---|
| Reconciled books | Answer questions about unusual transactions | Bookkeeper or accounting team |
| Full-year financials | Read and question them | Controller |
| Contractor and payroll data | Approve the contractor list | Bookkeeper |
| Funding records | Share signed documents and the cap table | Controller |
| Tax preparer handoff | Introduce your preparer | Controller |
| Cash runway | Decide what to do with it | Controller or finance lead |
| 2027 budget | Set the goals and priorities | Controller or CFO |
| 2027 close owner | Make the decision | You |
The pattern: you make decisions, someone else prepares the numbers. If you’re still doing the preparing yourself, that’s the gap our year-end bookkeeping and close program fills.
FAQs
What should a startup do before the end of the year?
Before year-end, a startup should reconcile every account, record revenue and expenses in the right period, collect W-9s from contractors, record funding correctly, review full-year financials, calculate cash runway, start a 2027 budget, and decide who will own the monthly close next year.
When do startups need to file taxes?
It depends on the entity. Calendar-year partnerships and S corporations typically file by March 15, and C corporations by April 15. Delaware corporations also owe a franchise tax and annual report by March 1. Confirm your specific deadlines with your tax professional.
Do I need to send 1099s to contractors?
For payments made in 2026, you generally need to file Form 1099-NEC for each contractor you paid $2,000 or more, up from $600 in prior years. Forms are due to contractors and the IRS by January 31, which moves to February 1 in 2027. Confirm your obligations with your tax professional.
What financial statements do investors expect at year-end?
Most investors expect a full-year income statement (P&L), balance sheet and cash flow statement, plus cash runway and a forward plan. They expect the numbers to match what you reported during the year and to tie to your cap table.
How early should founders start year-end prep?
Start in October. That leaves Q4 to catch up any missing months, collect W-9s and clean up the balance sheet, so January is spent on the close itself rather than on cleanup.
Close your 2026 books with a controller
You built the business. You shouldn’t have to spend December fixing your books.
CoCountant’s 2026 Year-End Close Program handles items 1 through 6 for you: catch-up bookkeeping, a proper year-end close, controller sign-off on your full-year financials and a clean handoff to your tax preparer. Then a monthly close for 2027 takes care of item 8.
Get Your Free Close Plan, or score your books first with the free 2026 Year-End Finance Checklist.
This article is a general guide, not tax, legal or audit advice. Talk to your tax professional about your filing obligations.
