The US Year-End Tax Calendar — Key Deadlines Your Bookkeeper Must Know

DeadlineTaskWho Does It
January 15Q4 estimated tax payment due (if applicable)Business owner pays; bookkeeper provides Q4 P&L data
January 311099-NEC furnished to contractors AND filed with IRSBookkeeper prepares; e-filed via IRS FIRE or payroll software
January 31W-2 furnished to employees AND filed with SSA (Copy A + W-3)Payroll software (Gusto, QBO Payroll) generates; bookkeeper reconciles YTD
January 31Q4 Form 941 due (payroll taxes)CPA or EA files; bookkeeper provides Q4 payroll data
February 1–15CPA workpaper package delivered (recommended)Bookkeeper (Sharma Jyoti and Co) delivers to CPA
March 15S-corp (1120-S) and partnership (1065) returns dueCPA files; or extension to September 15
April 15Individual (1040) and single-member LLC (Schedule C) dueCPA files; or extension to October 15

The Complete Year-End Bookkeeping Checklist

1. Bank and Credit Card Reconciliation Through December 31

  • ☑ All bank accounts reconciled through December 31 — no unmatched transactions
  • ☑ All credit card accounts reconciled through December 31
  • ☑ PayPal, Stripe, or other payment processor accounts reconciled
  • ☑ Petty cash balance confirmed if applicable
  • ☑ Any outstanding checks older than 90 days reviewed (may need to be voided and reissued)

2. 1099-NEC Preparation — Due January 31

  • ☑ Run a vendor payment report for the full year — identify all contractors, freelancers, and unincorporated service providers
  • ☑ Flag all contractors paid $600 or more in the calendar year for 1099-NEC
  • ☑ Confirm W-9 on file for each 1099 vendor — legal name, address, EIN or SSN
  • ☑ Check for B-notices from prior year — backup withholding may apply
  • ☑ Exclude payments to C-corps or S-corps (no 1099 required — confirm with W-9)
  • ☑ Exclude payments via credit card or PayPal (reported on 1099-K by the processor, not by you)
  • ☑ E-file 1099-NECs via IRS FIRE system or payroll/accounting software by January 31

3. Payroll Year-End Reconciliation

  • ☑ Reconcile W-2 year-to-date gross wages to payroll register — must match to the penny
  • ☑ Reconcile federal income tax withheld (W-2 Box 2) to total deposits made via EFTPS
  • ☑ Reconcile FICA employee and employer shares (Social Security + Medicare) to deposits
  • ☑ Reconcile state income tax withheld to state deposits
  • ☑ For S-corp owners: confirm reasonable salary documented for the year
  • ☑ W-2s furnished to employees and filed with SSA by January 31
  • ☑ Q4 Form 941 data prepared for CPA or EA to file by January 31
  • ☑ Annual Form 940 (FUTA) data prepared — due January 31

4. Fixed Assets and Depreciation

  • ☑ Record any asset purchases made during the year (equipment, vehicles, computers costing $2,500+)
  • ☑ Record any asset disposals — sale, write-off, or trade-in
  • ☑ Update depreciation schedule — your CPA will choose the depreciation method (MACRS, Section 179, bonus depreciation)
  • ☑ Reconcile fixed assets ledger balance to general ledger
  • ☑ Confirm any home office deduction documentation if applicable

5. Accruals and Adjustments

  • ☑ Prepaid expenses: reverse or adjust any insurance, rent, or subscription payments that cover January+ periods
  • ☑ Accrued expenses: record any December expenses not yet invoiced (utilities, services performed in December but invoiced in January)
  • ☑ Inventory: if you carry inventory, physical count as of December 31 and adjust QuickBooks to match
  • ☑ Loans: reconcile beginning balances and interest paid for any business loans
  • ☑ Owner/member distributions and draws: confirm all distributions recorded correctly against equity or capital accounts

6. The CPA Workpaper Package — What We Deliver

At Sharma Jyoti and Co, we prepare and deliver the following package to your CPA by early February:

  • Year-end trial balance — all accounts reconciled, correct closing balances as of December 31
  • Full-year P&L statement — income, cost of goods, all expense categories, net income
  • Balance sheet as of December 31 — assets, liabilities, equity
  • Bank reconciliation confirmation — all accounts reconciled and clean
  • Payroll summary — full-year gross, withholding, FICA, net, reconciled to W-2s
  • Fixed assets and depreciation schedule — additions, disposals, net book values
  • 1099 contractor summary — all vendors paid, amounts, whether 1099 filed
  • Members/shareholder distribution summary (for LLCs and S-corps)

When your CPA receives this package, they spend 3–5 hours on your return instead of 10–20. For most clients, that saves $1,000–$3,000 on their annual CPA bill — more than a full year of our monthly bookkeeping fees.

Related Reading
Catch-up bookkeeping for US small businessesBehind on books before year-end? Bookkeeper vs accountant vs CPA USAWho handles what at year-end Outsource 1099 preparation to India — US CPA guideCost, process, and January 31 timeline How much does outsourced bookkeeping cost?Full cost breakdown — India vs US rates

Frequently Asked Questions

All December 31 bank reconciliations should be complete within the first two weeks of January. 1099-NEC and W-2s must be filed by January 31. The full CPA workpaper package should be delivered by early February — ahead of the March 15 S-corp/partnership deadline and April 15 individual deadline.
Reconciling all bank and credit card accounts through December 31, preparing 1099-NEC for contractors paid $600+, producing W-2s, updating the fixed assets register, adjusting prepaid expenses and accruals, reconciling payroll YTD totals, and delivering a clean trial balance, P&L, and balance sheet as the CPA workpaper package.
January 31 — both for furnishing the form to the contractor AND for filing Copy A with the IRS. This applies whether you file electronically or by paper. Penalty: $60–$310 per form depending on how late. At Sharma Jyoti and Co we track 1099 vendors throughout the year so January is just final preparation, not a scramble.
Yes — W-2s must be furnished to employees by January 31, and Copy A + Form W-3 filed with the SSA by January 31 for electronic filers. Late W-2s: $60–$310 per form. Your bookkeeper prepares the W-2 data; payroll software (Gusto, QuickBooks) generates and files them.
Yes — we handle the complete package: December 31 reconciliation, 1099-NEC preparation and e-filing by January 31, payroll YTD reconciliation, fixed assets update, accrual adjustments, and a full CPA workpaper package. Your CPA reviews our workpapers and files. Starting from $200/month for ongoing clients; year-end package quoted separately for new clients.