Get your financial systems in order before tax season sneaks up on you. Check off items as you go.
Whether you're preparing to hire a CPA, getting ready for tax season, or just want your financial house in order, this checklist covers the essentials every startup needs. Work through each section and check off items as you complete them.
Note: This is a general guide, not professional tax or legal advice. Always consult a licensed CPA or attorney for guidance specific to your situation.
1
Business Foundation
Business is legally registered (LLC, S-Corp, C-Corp, etc.)
EIN (Employer Identification Number) obtained from the IRS
Business licences and permits are current
Registered agent information is up to date
Operating agreement or bylaws are documented
Business structure has been reviewed for tax efficiency
2
Separate Business & Personal Finances
Dedicated business checking account opened
Business savings account for taxes (set aside 25–30% of profit)
Business credit card in use — not personal card for business expenses
No personal expenses running through business accounts
Owner draws/salary are properly documented
Reimbursement process exists for any personal cards used for business
Pro tip: Commingling funds is the #1 mistake CPAs see with startups. It creates bookkeeping nightmares and can pierce your liability protection.
3
Bookkeeping Systems
Accounting software set up (QuickBooks, Wave, Xero, FreshBooks)
Bank accounts connected to accounting software
Chart of accounts customised for your business
Transactions categorised monthly — not once a year
Bank reconciliation done monthly
Receipts captured and stored digitally (Dext, Expensify, or folders)
Bookkeeping schedule established (weekly or monthly)
Pro tip: 30 minutes of weekly bookkeeping beats 30 hours of year-end panic.
4
Income & Invoicing
Invoicing system in place with consistent numbering
Payment terms clearly defined (Net 15, Net 30, due on receipt)
Late payment follow-up process exists
All income sources tracked (including Stripe, PayPal, cash)
Sales tax obligations reviewed (especially for e-commerce or multi-state)
1099-K thresholds understood for payment processors
5
Expenses & Deductions
Business expenses tracked and categorised
Home office deduction documented (square footage, expenses)
Vehicle/mileage log maintained
Software subscriptions list compiled
Meals & entertainment expenses documented with business purpose
Startup costs tracked (may be deductible up to $5,000 in year one)
Equipment purchases documented for depreciation
Common startup deductions to discuss with your CPA:
Software & tools
Marketing & advertising
Professional services (legal, accounting, consulting)
Education & training
Business insurance
Contract labour
6
Payroll & Contractors
Employee vs. contractor classifications reviewed (misclassification = penalties)
W-9 forms collected from ALL contractors before paying them
1099-NEC forms issued to contractors paid $600+ (due January 31)
Payroll system set up if you have employees (Gusto, ADP, etc.)
Payroll tax deposits scheduled and automated
Workers' comp insurance reviewed
7
Tax Deadlines & Compliance
Quarterly estimated tax payment deadlines:
Q1
April 15
Q2
June 15
Q3
September 15
Q4
January 15
Quarterly estimated tax payments scheduled
Annual tax filing deadline known
State tax obligations reviewed
Sales tax filing schedule established (if applicable)
Annual report/franchise tax deadlines calendared
Tax documents folder created for year-end
8
Preparing to Work with a CPA
Documents to gather before your first CPA meeting:
Prior year tax returns (business and personal)
Formation documents (articles of incorporation/organisation)
EIN confirmation letter
Year-to-date profit & loss statement
Year-to-date balance sheet
Bank and credit card statements
Payroll reports (if applicable)
List of major purchases and assets
Loan documents (if any)
Questions to ask a potential CPA:
Do you work with startups or businesses in my industry?
What's included in your fees — tax prep only, or advisory too?
How do you prefer to communicate and how often?
Can you help with tax planning, not just tax filing?
What bookkeeping software do you recommend?
9
Monthly Financial Rhythm
Set a recurring "Finance Day" each month:
Reconcile all bank and credit card accounts
Categorise any uncategorised transactions
Review profit & loss statement
Follow up on unpaid invoices
Set aside tax savings (25–30% of profit)
Review upcoming bills and cash flow
File receipts and documents
✓
Your Financial Health Score
0
items checked out of 46
0–15: Financial fire drill mode
Your books need attention before tax season becomes a crisis. Start with separating finances and setting up bookkeeping software this week.
16–30: Building your foundation
You've got the basics but gaps could cost you deductions or create compliance risks. Prioritise the unchecked items in sections 3, 6, and 7.
31+: CPA-ready
Your financial systems are solid. A CPA will love working with you and you're positioned to focus on tax strategy instead of cleanup.
Need help with your bookkeeping?
Setting up these systems is exactly what I do.
Let's get your finances in order so tax season is stress-free — for you and your CPA.
This checklist is for general informational purposes only and does not constitute tax, legal, or accounting advice. Consult a licensed CPA or attorney for guidance specific to your business and jurisdiction.