March Accounting & Tax Reminders
March is a key month for compliance, cleanup, and planning. Addressing these items now helps you avoid filing issues and creates a smoother path for the rest of the year.
Businesses electing S-Corporation status for the 2026 tax year must file Form 2553 with the IRS by March 15. If you're considering an election — or want to confirm whether one has already been filed — review it before the deadline.
Many Alabama business entities must file and pay the Business Privilege Tax by March 31 with the Alabama Department of Revenue. Note: certain disregarded entities (such as single-member LLCs taxed as disregarded for federal purposes) may not be required to file. Requirements depend on entity type and classification, so confirmation is recommended.
Retirement Savings & Employer Plan Planning
March is an important planning month for retirement contributions, especially for business owners.
Employer retirement contributions
For businesses with returns due March 15, employer contributions to 401(k), Solo 401(k), SEP-IRA, and profit-sharing plans generally must be made by the return due date, unless an extension is filed. Filing an extension may allow additional time to fund contributions, provided plan rules allow it.
IRA contributions
Traditional and Roth IRA contributions for the prior tax year may be made up until April 15 — an opportunity to reduce taxable income or strengthen long-term savings.
Payroll-based plans
- Confirm employee deferrals are deposited timely
- Review employer match calculations
- Ensure payroll and retirement records align before quarter-end
Contribution limits and deductibility rules vary by entity type — planning ahead avoids missed opportunities or compliance issues.
Quarter-End Bookkeeping Review
As Q1 closes, business owners should:
- Ensure January and February bank and credit card accounts are fully reconciled
- Upload all outstanding receipts, invoices, and statements
- Review owner draws, distributions, and payroll postings
- Identify and document any unusual or one-time transactions
Clean books early in the year reduce errors and simplify tax reporting later.
Estimated Taxes & Cash Flow Check
- Reassess estimated tax payments
- Compare year-to-date results to prior years
- Adjust cash reserves based on Q1 performance
Payroll, Sales Tax & Internal Controls
- Confirm payroll filings and payments are current
- Verify sales tax filings for all applicable jurisdictions
- Review the taxability of any new products or services
- Review bill-pay and expense-approval workflows
- Update accounting software user permissions and strengthen internal controls before activity picks up later in the year
Questions about any of these deadlines, or want help reviewing your compliance and planning opportunities? Call the office — we're glad to help.
Call 251.948.0132 →These newsletters provide general tax and bookkeeping education only and are not personalized advice. Consult your CPA about your specific situation.