Pre-tax filing checklist for your books

Before filing your federal taxes, it’s crucial to ensure your accounting is thorough and accurate. Here’s a checklist of key tasks to complete before you hit “file”:

1. Review Expense Documentation
Go through all your expenses to make sure they’re correctly categorized and supported by receipts or invoices. Verify that deductible expenses, such as office supplies, travel costs, and salaries, are properly recorded.

2. Reconcile Accounts
Perform a reconciliation of your bank accounts, credit cards, and other financial accounts. Match your records with bank statements to catch any discrepancies and correct them before filing.

3. Check for Missing Transactions
Look for any missing transactions that may have been overlooked. Ensure all revenue and expenses are captured in your accounting system.

4. Confirm Accurate Depreciation
If you have depreciable assets, ensure that depreciation has been calculated correctly and applied according to IRS guidelines.

5. Review Tax Deductions and Credits
Double-check that you’re claiming all eligible tax deductions and credits. Ensure that you’ve utilized credits for things like education, energy-efficient investments, or research and development.

6. Prepare Financial Statements
Compile your financial statements, including the income statement, balance sheet, and cash flow statement. Review them for accuracy and completeness, as these documents are crucial for accurate tax reporting.

7. Ensure Compliance with Tax Laws
Verify that your accounting practices comply with current tax laws and regulations. Make sure you’re aware of any recent changes that could affect your tax filings.

8. Complete and Review Tax Forms
Fill out all required tax forms accurately, including Schedule C (for sole proprietors) or other relevant forms for your business structure. Review each form for errors or omissions.

By ticking off these boxes, you’ll ensure your accounting is in top shape and your federal tax filing is accurate and compliant.