Tax Prep Checklist: Self-Employment and Business Records

If you are self-employed or run a small business, tax preparation requires more than just reporting income. Proper recordkeeping throughout the year is essential to claim deductions, stay compliant with IRS rules, and avoid unnecessary penalties.

At Tax & Beyond LLC, we help freelancers, independent contractors, and business owners organize their financial records so tax season becomes simple and stress-free. Use this checklist to make sure you have the right documents ready before filing your taxes.

General Business Expenses

Tracking everyday business expenses is one of the most effective ways to reduce taxable income.

Common deductible expenses include:

• Office supplies and equipment

• Software subscriptions and online tools

• Marketing and advertising costs

• Professional services (legal, accounting, consulting)

• Internet and phone expenses used for business

Keep receipts, invoices, and bank statements to support every expense you claim. Organized expense records ensure accuracy and protect you in case of an IRS review.

Quarterly Estimated Tax Payment Receipts

Self-employed individuals are usually required to pay taxes throughout the year using quarterly estimated payments.

Make sure you keep:

• Payment confirmations

• IRS payment receipts

• Bank transaction records

• Dates and amounts of each payment

These records help prevent double payment and ensure proper credit when your annual tax return is prepared.

Mileage Records

If you use your vehicle for business purposes, mileage can be a valuable deduction.

Maintain a detailed log that includes:

• Date of travel

• Business purpose of the trip

• Starting and ending mileage

• Total miles driven for business

Using a mileage tracking app or maintaining a written log throughout the year makes this deduction easier to claim accurately.

Home Office Deduction

Many self-employed individuals work from home and may qualify for a home office deduction.

To claim this deduction, the workspace must be:

• Used regularly for business

• Used exclusively for business activities

Helpful documents include:

• Rent or mortgage statements

• Utility bills

• Internet expenses

• Measurements of office space compared to total home size

Proper calculation ensures compliance while maximizing tax savings.

Stay Organized for a Better Tax Outcome

Self-employment offers flexibility and independence, but it also comes with additional tax responsibilities. Keeping accurate business records throughout the year helps reduce stress, prevent errors, and maximize deductions legally.

At Tax & Beyond LLC, we provide professional tax preparation, bookkeeping, payroll, and financial consulting services for self-employed individuals and businesses across the United States. Based in Harrisburg, Pennsylvania, we proudly serve clients nationwide, with a special focus on supporting the Nepali community.

Good records build strong businesses — and smarter taxes.