The end of the year is more than just a date on the calendar. It’s a critical checkpoint for your farm business. The close of the calendar year marks the finish line for your tax year and signals the start of tax preparation. Wrapping up your farm records now ensures you’re organized, audit-ready, and positioned for smarter decision-making next year.

Accurate records are key for staying in compliance with the IRS, preparing your tax returns, and securing funding from a lender or the Department of Agriculture. So what do you need to gather before January 1?

Here’s your 10-part checklist to close the year strong.

1. Income and farm income summaries

Track every dollar your farm operation brought in this year, crop and livestock sales, farmers markets, custom work, direct-to-consumer sales, or conservation payments. Organize that information in a summary or income statement. This is essential for filling out Schedule F and calculating income tax, social security, and self-employment taxes. It also gives you a clean snapshot of your revenue for the previous year.

2. Expense and depreciation schedules

Expenses add up fast: fuel, feed, fencing, pesticides, veterinary bills, insurance premiums, and equipment repairs. Organize receipts and categorize your expenditures. Then, double-check your depreciation schedule: have you accounted for all major purchases? Documenting the annual depreciation of your tractors, tools, and buildings helps reduce your tax liability and supports accurate long-term valuations.

3. Farm products and inventory valuation

What are you carrying over into next year? Take stock of your farm products: stored grain, hay, seed, feed, and unsold livestock. Calculate the market value of this inventory so you can enter it into your balance sheet. This step is vital if you're using accrual accounting or preparing to apply for a loan.

4. Cash flow and receivables

Review your cash flow. Did all your customers pay you? If not, document outstanding receivables. Capture this in your record-keeping system and compare expected vs. actual income for the year. A clear cash flow summary helps you forecast next year’s operations and avoid unexpected shortages.

5. Balance sheet and business assets

Your balance sheet is the foundation of your financial records. List all assets, equipment, livestock, land, building, and all liabilities like credit cards, machinery loans, and mortgages. This tells you the net worth of your operation and is often required by lenders or government programs.

6. Inputs, pesticide, and seed records

Good farm management means tracking your inputs such as seed, chemicals, fertilizer, and fuel. If you’ve been keeping logs throughout the year, now’s the time to update them. Pesticide application records and input usage also help with crop insurance claims, program compliance, and cost-of-production analysis.

7. Mileage and vehicle logs

If you used your truck or tractor for business purposes, that usage may be deductible. Record odometer readings and miles driven for things like hauling equipment, trips to suppliers, or crop deliveries. Be specific about which vehicles were used and for what purpose.

8. Insurance, life insurance, and property tax documentation

Pull together documentation for your insurance policies: crop insurance, equipment, general liability, life insurance, and health coverage. If you paid property taxes on farm real estate this year, include those too. These records are often deductible and may support eligibility for exemptions or financial assistance.

9. Tax forms: Schedule F, Schedule A, and past returns

Gather all relevant tax forms from the previous year: Schedule F for farm income, Schedule A for itemized deductions, and any other tax forms you’ll need. Reviewing last year’s tax return can help you avoid missing categories or repeating errors. Organize everything in one folder for your tax preparer.

10. Financial statements and accrual adjustments

If you use accrual accounting, you’ll need to make adjustments for expenses that were prepaid or income you earned but haven’t received yet. Update your financial statements such as your income statement, balance sheet, and cash flow report, to reflect year-end realities. These statements will guide your business decisions for the coming year.

How FarmRaise can help

If you’re using FarmRaise Tracks, you’re already ahead of the game. If you haven’t started yet, it’s not too late. Tracks lets you link your bank accounts, upload receipts, and tag transactions throughout the year into Schedule F categories. You can generate printable income statements, balance sheets, and even a Schedule F draft, so you’re not starting from scratch when tax season rolls around.

You can also track inputs, inventory, and invoices, and export your financials into a spreadsheet or share them directly with your tax professional. For those still using Excel, FarmRaise also offers free templates to help you organize your records and convert them into actionable data.

By using FarmRaise Tracks throughout the year, you build better habits that make recordkeeping less stressful and tax preparation far more efficient.

Final thoughts

Closing your books before January 1 isn’t just about tax compliance. It’s about gaining clarity. With a clean set of financial records, you can plan crop rotations, equipment purchases, labor needs, and business goals for the next year. You’ll also be ready to apply for loans, grants, or USDA programs without scrambling to pull together documents.

This year-end checklist isn’t about perfection, it’s about progress. Set aside a day or two to complete it, and your future self will thank you when tax season hits.

Ready to get started? Sign up for FarmRaise today and start building a better future for your farm. Use code IT3H12B at checkout for 20% off or use this link to checkout now.