Tax Preparation Checklist

Set up (once)

• Open a dedicated business bank account.
• Open a dedicated business credit card if you carry expenses.
• Choose a bookkeeping tool that maps to your tax return line items.
• Create the tax-year folder structure (Income, Expenses, Payroll, Taxes paid, Filings).
• Set calendar reminders for quarterly estimated payments.

Records to keep (all year)

• All bank statements (business).
• All credit card statements (business).
• Receipts for every expense over the reporting threshold.
• Invoices sent and received.
• 1099 forms received (US) or equivalent income statements.
• W-9 or W-8 forms for every contractor you paid.
• Mileage log for business vehicle use.
• Home office measurements if claiming the deduction.
• Health insurance premium statements (self-employed deduction).
• Retirement contribution confirmations.

Quarterly (US 1040-ES)

• Compute year-to-date net income.
• Apply your effective tax rate.
• Subtract what you have already paid.
• Send the difference by the quarterly deadline (April 15, June 15, September 15, January 15).
• Save the confirmation in the Taxes paid folder.

Year-end

• Run a full-year Profit and Loss.
• Spot-check the top ten expense categories for miscategorized transactions.
• Make any deductible purchases you were planning before year end.
• Confirm all contractor 1099s are on file.
• Estimate retirement contribution room and make deposits.

Filing week

• Close the books.
• Export P&L and Balance Sheet as PDFs.
• Hand to accountant or import to tax software.
• Review return draft; confirm every deduction and every income line.
• Sign, file, save signed copy.
• Transfer any remaining owed tax from the reserve account.

Post-filing

• Archive the completed tax year folder.
• Start next year's folder structure.
• Note anything you would do differently.

See also the tax preparation workflow guide and the monthly bookkeeping checklist.