Annual Tax Prep

Ugh, taxes! I know. Our farm is an LLC, which means that our first filing date of the year is March 15, with personal taxes due April 15. Our accountant requires that all documents reach them by February 15, which leaves very little time to reconcile the previous year's books and get my paperwork in order. Tax prep is the perfect example of a task that happens once per year, a task that almost needs to be re-learned each year, and a task that is perfectly suited to be simplified by a checklist. Here's mine. You can use as-is, or read on for a little more context:

Our business is fairly straightforward, we have a few bank accounts, a couple of loans, some employees, we usually get a grant or two each year, and we buy and sell off very few assets. My checklist reflects that, so if you are required to report on more than that, please check with your accountant and add those items to the checklist. Otherwise the check list is pretty simple. First, I reconcile our books and I make sure I get my 1099 information to my accountant by their (even earlier) deadline. Then I make a new folder on my computer/Google Drive to house this year's documents. Next I scour my records for the required documents (there are a lot, so the checklist helps remind me where I'm at) and upload them to the folder. Then I review my profit and loss statement and balance sheet and upload the lot of it to our accounting firm's secured portal. Two things I do to make this more painless are 1, I have a running document saved in my tax folder called Accountant Questions. That way when things come up during the year I can put them in one place and include those questions or notes with my annual packet. Second, I include links on my checklist where ever I can. I link to my Tax folder, my accountant's email, the Accountant Questions Document, and the firm's website. Just that little bit helps me think less and get things done more quickly. I hope it's helpful for you as well.