Your Tax Preparation Checklist for a Stress-Free Filing Season

Burkland Brief:

Get your records in order early so your CPA can focus on strategy instead of cleanup.
Keep financial data current and easy to access year-round for faster, more accurate filing.
Document assets and major purchases to simplify depreciation and deductions.
Customize this tax preparation checklist for your business and use it every year to make tax prep smooth, efficient, and predictable.

Tax season comes with a real price tag for business owners.

According to the Tax Foundation, U.S. businesses spend more than $126 billion each year just complying with corporate income tax requirements, plus billions more managing payroll and depreciation filings. For small corporations, preparing a single federal return takes around 50 hours on average.

That’s valuable time that could be spent running and growing the business. The best solution is better preparation. With organized records and a clean handoff, your CPA can file faster and more efficiently, uncover savings, and eliminate last-minute surprises. This tax preparation checklist outlines exactly what to prepare and how to stay ahead of every deadline.

1. Company Information

Articles of Incorporation / Operating Agreement
Your legal formation documents show ownership structure and entity type. They help your CPA confirm how your business should be taxed (LLC, S-Corp, C-Corp, etc.).
Tip: Keep digital copies with signed amendments in one folder for easy reference.
Employer Identification Number (EIN)
The federal tax ID number used to identify your business on all tax filings. It ensures all returns and payments are credited correctly.
Tip: Double-check that the EIN matches your IRS records before filing. Errors can delay processing.
State and Local Registrations
Certificates, permits, or state tax accounts for where you operate. Each jurisdiction has its own filing requirements.
Tip: Review your state and local filing calendars annually to avoid missing franchise or business tax deadlines.

2. Financial Statements

Year-End Balance Sheet
Summarizes what your business owns and owes. It provides the foundation for tax depreciation, asset reconciliation, and retained earnings calculations.
Tip: Review fixed assets for disposals or obsolete items before year-end to simplify depreciation schedules.
Income Statement (Profit & Loss)
Shows revenue, expenses, and profit for the year. Your CPA uses it to calculate taxable income and identify deductible expenses.
Tip: Categorize expenses consistently each month to reduce cleanup time during tax prep.
Cash Flow Statement
Tracks cash in and out of the business across operations, investing, and financing. For tax prep, it helps tie book income to cash activity, spot noncash items like depreciation, and plan timely estimated payments.
Tip: Use this report to spot cash shortfalls early and plan for quarterly tax payments.

📄Related Article: What Financial Records Should My Business Keep?

3. Payroll Records

Payroll Register and W-2 Summaries
Documents total wages, withholdings, and taxes paid. They ensure accurate employer tax reporting and compliance with payroll laws.
Tip: Confirm all W-2s match quarterly filings before issuing them to employees.
Contractor Payments (Form 1099-NEC)
Lists all nonemployee compensation. Businesses must issue 1099s for contractors earning $600 or more.
Tip: Require completed W-9s from contractors before paying them to avoid scrambling in January.
Payroll Tax Filings (Forms 940, 941, etc.)
These prove that employment taxes were paid accurately and on time.
Tip: Keep copies of all filed forms in your year-end tax folder. Your CPA will need them to reconcile wages and tax credits.

📄Related Article: What Payroll Taxes Does My Business Have to Pay?

4. Expense Documentation

Receipts and Invoices
Evidence for all business expenses and deductions. The IRS requires documentation to substantiate every deduction claimed.
Tip: Use a digital expense management tool to automatically capture and categorize receipts.
Mileage Logs and Vehicle Expenses
If you use a vehicle for business, the IRS requires detailed mileage records to claim deductions.
Tip: Use an app to track mileage automatically instead of guessing at year-end.
Meals and Entertainment Records
Only 50% of qualifying business meals are deductible. Detailed notes about the business purpose and attendees are required.
Tip: Record who you met and why directly with the receipt while it’s fresh.

📄Related Article: Bookkeeping Best Practices for Small Businesses

5. Capital Assets and Depreciation

Fixed Asset Register
Lists equipment, vehicles, and property purchased for your business. It’s used to calculate depreciation and Section 179 deductions.
Tip: Review your list annually and mark assets sold, scrapped, or no longer in use.
Purchase Invoices for Major Assets
These verify cost basis and purchase dates for depreciation purposes.
Tip: Store them with your accounting records, not buried in general folders, to save time during audits.

6. Shareholder or Partner Information

Ownership Schedule
Shows each owner’s percentage and any ownership changes during the year. It determines how profits, losses, and distributions are allocated.
Tip: Update this schedule as soon as ownership changes occur, not at year-end.
Distributions and Contributions
Records of owner draws, dividends, or capital infusions. These affect basis calculations and can impact taxable income.
Tip: Document all cash and noncash contributions to avoid future basis confusion.

7. Loans and Debt

Loan Agreements and Amortization Schedules
Used to confirm deductible interest and separate principal from interest in your books.
Tip: Match your loan balances in accounting software with lender statements every quarter.
PPP, EIDL, or Other Relief Loans
If applicable, these must be reported accurately to reflect forgiven amounts and taxable implications.
Tip: Keep forgiveness letters and support documentation for at least seven years.

8. International and Multi-State Operations

Foreign Transactions or Subsidiaries
International activity can trigger extra reporting requirements like Form 5471 or transfer pricing documentation.
Tip: Inform your CPA early if you have any foreign bank accounts, even if dormant.
Sales in Multiple States
You may owe state income or sales taxes in states where you have “nexus.”
Tip: Track sales by state and have your CPA evaluate nexus annually.

📄Related Article: Tax Risks That Sneak Up on Business Owners

9. Tax Payments and Prior-Year Returns

Estimated Tax Payments
Proof of quarterly payments helps avoid underpayment penalties and confirms totals already paid to the IRS.
Tip: Keep digital copies of all EFTPS confirmations.
Prior-Year Federal and State Returns
Your CPA uses these to carry forward credits, depreciation, and other tax attributes.
Tip: Send the full signed return, not just the summary pages.

10. Key Deadlines and Final Review

Calendar of Filing Deadlines
Every business type has unique due dates for federal, state, and local filings.
Tip: Build these into your accounting calendar at the start of each year to avoid rush fees or extensions.
Final Review Meeting
Before filing, review drafts with your CPA to confirm all deductions and elections are correctly captured.
Tip: Schedule this meeting before March to avoid the pre-deadline crunch.

Snapshot of Key Tax Preparation Documents:

Document	What It Is	Why It Matters
Balance Sheet	Snapshot of assets, liabilities, and equity at year-end.	Confirms what the business owns and owes; forms the basis for depreciation, loans, and retained earnings.
Income Statement (P&L)	Summary of revenues and expenses over the year.	Determines taxable income and highlights deductible categories for review.
Cash Flow Statement	Tracks cash coming in and going out across operations, investing, and financing.	Reconciles book income to cash flow and helps plan quarterly tax payments.
General Ledger (GL)	Detailed listing of all accounting transactions.	Provides audit trails and supports tax adjustments, allocations, and error detection.
Accounts Receivable and Payable Aging	Lists unpaid invoices and outstanding vendor bills.	Ensures income and expenses are recorded in the correct tax year.
Bank and Credit Card Reconciliations	Verifies that accounting balances match actual statements.	Confirms accuracy of reported income and prevents duplication or omission.
Payroll Records and Filings	Reports employee wages, taxes withheld, and employer contributions.	Required for compliance and accurate reporting of payroll expenses and credits.
1099s and W-9s	Forms used to report nonemployee compensation and collect contractor info.	Ensures IRS compliance and avoids penalties for missing information returns.
Fixed Asset Register	Record of business-owned property, equipment, and vehicles.	Supports depreciation schedules and deductions for capital purchases.
Loan Statements and Amortization Schedules	Documentation of business loans, interest, and principal payments.	Separates deductible interest from principal and supports accurate reporting.
Prior-Year Tax Returns	Previous filings for federal, state, and local taxes.	Provides carryforward data (credits, NOLs, depreciation) and reference points for consistency.
Estimated Tax Payment Receipts	Proof of quarterly federal and state tax payments.	Ensures payments are properly credited and helps avoid underpayment penalties.

Tax preparation is easier when it’s a year-round habit, not a once-a-year sprint. Use a tax preparation checklist like this one to stay organized, avoid surprises, and keep filings accurate. Keep clean records, automate what you can, and partner with professionals who understand your business structure and goals. Burkland’s tax experts can help streamline your processes so tax season becomes just another smooth close. Contact us to request more information for your business.