Free Tool

The Tax Season Prep Checklist.

Tax preparation belongs to your tax professional. Tax readiness belongs to the bookkeeper — and that's what this checklist covers: getting the books so clean and the documents so organized that your CPA's job (and bill) shrinks. Check items off as you go, or print it.

0 of 0 steps complete

🎉 Package complete. Your tax pro is going to love you.

Step 1 — Close out the books

Everything downstream depends on the books being complete and reconciled through December 31.

Record every transaction through year-endClear the bank feed completely — nothing left unaccepted, nothing sitting in review.

Reconcile every account through December 31Every bank account, credit card, and loan. Our Reconciliation Checklist walks the process.

Empty the 'Uncategorized' and 'Ask My Accountant' accountsEvery transaction parked there needs a real category — or a note for your tax pro explaining why it can't have one.

Review the full-year Profit & Loss for odditiesNegative expenses, categories that doubled for no reason, income in expense accounts — anything that makes you say 'huh' will make your CPA say it too.

Check that loan payments are split correctlyPrincipal reduces the loan balance; only interest is an expense. Lumping the whole payment into an expense account is the classic year-end find.

Confirm owner pay is categorized correctlyOwner draws and distributions are equity, not payroll expense (for sole props and most LLCs). Mixing these up distorts the P&L.

Verify no personal expenses are hiding in the business booksFlag anything mixed; your tax pro needs to know, not discover.

Step 2 — Gather the documents

One folder — physical or digital — with everything a preparer asks for.

Year-end statements for every bank and credit card accountThe December statements prove your reconciliations.

Loan statements showing year-end balances and interest paidLenders usually issue an annual statement; interest is the number your preparer needs.

Payroll reports for the yearIf you run payroll, your provider produces annual summaries and files the payroll forms.

Receipts for major asset purchasesEquipment, vehicles, big improvements — purchases like these may be handled differently than regular expenses, and that's a call your tax pro makes.

Mileage log, if vehicles are used for businessWhatever method your tax pro uses, they'll need the miles documented.

Home office details, if applicableSquare footage and home expenses — your preparer determines what applies.

Last year's tax returnNew preparer or old, it's the map of how things were handled before.

Step 3 — Contractors and forms

The January scramble, prevented in December.

Confirm you have a W-9 on file for every contractorCollecting W-9s before paying a contractor is the habit; chasing them in January is the penalty for skipping it.

Review vendor totals for 1099 candidatesContractors paid $600 or more during the year generally receive a 1099 — QuickBooks® can track eligible vendors all year (our Module 9 covers this).

Know the deadline: 1099-NEC and W-2 forms are generally due January 31Filing them is often handled by your payroll provider, accountant, or an e-file service — decide who's doing it before January.

Verify contractor totals match the booksThe amount on the form should reconcile to what your records say you paid them.

Step 4 — Build the handoff package

What clean books look like when they arrive at a tax pro's desk.

Run the Profit & Loss for the full yearAccrual or cash basis — ask your preparer which they want, and note which you sent.

Run the Balance Sheet as of December 31This is where loan splits, owner equity, and reconciliation quality show — a clean balance sheet is the mark of clean books.

Export the general ledger or transaction detail if requestedSome preparers want to spot-check; having it ready beats a follow-up email.

Write a short cover noteList anything unusual this year: new loans, asset purchases, mixed personal expenses you flagged, category changes. Surprises cost billable hours; notes don't.

Ask your tax pro three questionsWhether they want cash or accrual reports, whether any estimated payments should be planned for next year, and what they wish clients did differently — that last one improves your books forever.

Why this is the bookkeeper's superpower

Tax professionals bill for time, and most of their time on small-business returns is spent fixing books, not doing taxes. Walk in with reconciled accounts, a clean P&L, a balance sheet that balances, and a cover note — and you've converted yourself from their hardest client into their favorite one. If you're a bookkeeper serving clients, this checklist is the year-end service you sell.

The concepts underneath every item here — reconciliation, categorization, equity vs. expense, reading the reports — are Modules 11, 12, and 14 of our course, with the closing-the-books workflow in Module 14.

Want the skills behind the checklist?

This checklist is free forever — no account needed. To actually master year-end (and everything before it), create a free account (no card required) and start with Module 1.

Create a Free Account See Pricing

Important: This checklist is educational content about bookkeeping organization — it is not tax, legal, or financial advice, and it doesn't cover every situation. Tax rules, forms, thresholds, and deadlines change and vary by entity type and location. Always confirm requirements and deadlines with a qualified tax professional or official IRS guidance for your specific situation.