What Your Accountant Wants You to Know Before You File This Year

Tax time can feel like a whirlwind—especially for farmers, ranchers, and small business owners juggling countless responsibilities. But with the right prep and a few insider tips from seasoned tax professionals, you can turn the chaos of tax season into a manageable, even empowering experience.

Whether you’re a self-employed grower or manage multiple sources of business income, this guide will walk you through what your accountant really wants you to bring to the table—literally and figuratively—when filing your income tax return. Better yet, we’ll show how FarmRaise can streamline the process for you, so you spend less time sorting paperwork and more time on the land.

1. Get Your Bookkeeping in Order Early

The number one thing every certified public accountant (CPA) will tell you? Start early. Solid bookkeeping is the bedrock of accurate tax filing and meaningful tax planning.

Many taxpayers and filers rush to organize their records in February or March, often realizing too late that key tax documents are missing or misfiled. For small business owners and independent contractors especially, keeping your books up to date throughout the year is crucial.

Use tools like FarmRaise Tracks to categorize transactions, log income, and track business expenses as they happen. That way, when your tax accountant asks for your financial statements, you’ll have a clear, categorized breakdown ready to go.

Accountant tip: Export a profit and loss statement for the year from your bookkeeping tool. It gives your CPA a snapshot of your business income and deductible expenses in one go.

2. Know What Documents to Gather

A successful tax return starts with knowing what your accountant needs to file it properly. Here’s a quick checklist of tax documents to compile before you schedule your meeting:

• [Form W-2](https://www.farmraise.com/farmraise-payroll?) for wages (if applicable)
• 1099s for contract or freelance work
• Bank account statements for reconciling income and expenses
• Receipts for business expenses, medical expenses, or charitable contributions
• Mortgage interest and real estate property tax statements
• Records of rental income and expenses (for rental property owners)
• IRA contributions and retirement plan adjustments
• Proof of student loan interest or tuition payments
• Prior year’s tax return and any estimated tax payments made

Pro tip: Keep your Social Security number, EIN, and dependent information handy to verify accuracy across all filings.

3. Understand Which Deductions Apply to You

Knowing which tax deductions you qualify for can significantly reduce your taxable income. But many small business owners miss out on these simply because their records are incomplete.

Here are some deductions your tax professional will likely explore:

• Standard deduction or itemized deductions, depending on what yields a better return
• Business tax deductions: fuel, feed, seed, software, office supplies
• Self-employed health insurance premiums
• Home office expenses if you manage operations from your property
• Charitable contributions (make sure you have receipts)
• Medical expenses if they exceed a percentage of your income

Using FarmRaise to tag expenses throughout the year makes it easier to compile and categorize these items during tax season. Plus, it ensures your CPA has an accurate record to back up your claim in case the IRS comes calling.

4. Classify Income Properly

Many farmers wear multiple hats: grower, equipment renter, landlord, even educator. But each income stream may be taxed differently.

You’ll need to separate:

• Business income from the sale of goods and services
• Rental income from farmland or buildings
• Investment income, such as dividends or capital gains
• Government payments like USDA subsidies

Misreporting or lumping these together can raise red flags with the IRS and result in a higher tax bill or audit risk. Your accountant will appreciate a clear breakdown, and FarmRaise Tracks allows you to assign income categories to each transaction so everything is filed appropriately.

5. Watch for Tax Law Changes

Tax laws evolve regularly—and 2025 is no different. Depending on your filing status and deductions, you may be affected by:

• Adjustments to the standard deduction
• Changes to tax credit eligibility (like the Child Tax Credit or Earned Income Tax Credit)
• Shifts in tax brackets for different income levels
• New rules affecting retirement plan contributions or withdrawal penalties

Tax professionals stay updated on IRS bulletins and legislative changes. That’s why it’s smart to consult your CPA before finalizing your year-end finances. They’ll help you understand how recent updates may impact your year’s tax return, and can offer guidance to lower your taxable income before you file.

6. Don’t Skip Estimated Tax Payments

For self-employed farmers and ranchers, skipping or underpaying estimated tax payments can lead to penalties at tax time. The IRS expects you to pay taxes as you earn income—not just in one lump sum at the end of the year.

A tax professional can help calculate your estimated quarterly payments based on your projected income and expenses. If you’ve used FarmRaise Tracks to monitor cash flow and seasonality, your CPA will have the historical context needed to make an accurate forecast.

7. Depreciation Matters

Have you made major purchases—like tractors, greenhouses, or fencing? Your CPA may recommend spreading the cost over several years using depreciation. This lowers your taxable income without draining your deductions all at once.

Using software like FarmRaise Tracks, you can flag capital expenditures so they’re set apart from standard expenses. Your accountant needs that separation to file the correct tax forms and support your business tax claims.

8. Understand Your Filing Options

Most taxpayers have the option to e-file their returns for speed and convenience. Still, some may benefit from paper filing, especially if handling more complex itemized deductions or applying for specific tax credits.

Additionally, your filing status—whether single, married filing jointly, or head of household—will influence your income tax return calculations.

FarmRaise doesn't offer tax filing services directly, but our partners and resources can guide you toward trustworthy professionals who do. And when you bring well-organized reports to the table, your tax accountant can file faster and more accurately, reducing the risk of errors or audits.

9. Communicate with Your Tax Professional

Your CPA or tax professional isn’t just there to crunch numbers. They’re a strategic partner in maximizing your refund and minimizing your tax bill.

Be proactive. Share:

• Major life changes (births, deaths, marriages, dependents)
• Property acquisitions or sales
• Changes in business structure or ownership
• Shifts in pricing, suppliers, or contracts

Clear communication, paired with good record keeping, means fewer surprises come tax time. And the more you collaborate, the more your accountant can help you plan for the year ahead—not just look in the rearview mirror.

10. Consider a Pre-Tax Season Strategy Session

Why wait until deadlines loom? Schedule a meeting with your accountant in the fall or early winter. That gives you time to implement strategies that can influence your tax refund or reduce the size of your tax bill before the calendar year closes.

If you’re a small business owner or manage a rental property, planning early means better clarity on cash flow, deductions, and how to handle slow seasons.

Many FarmRaise users who schedule pre-tax consultations report reduced stress and better decision-making, particularly when navigating changes in crop pricing or input costs.

FarmRaise Helps You Bring Your Best to Tax Season

Filing taxes doesn’t have to be overwhelming—especially when you have FarmRaise on your side. From daily expense tracking to tax-ready reports, FarmRaise empowers farmers, ranchers, and small business owners to take control of their finances and stay audit-ready all year long.

Whether you're managing receipts, monitoring business income, or preparing for tax deductions, FarmRaise Tracks keeps your records clean, categorized, and ready for your CPA.

Here’s how FarmRaise supports your tax preparation before, during, and after tax season:

• Transaction tagging for business income and expenses, including rental income and payments to independent contractors
• Smart bookkeeping categories aligned with IRS-recognized deductions for easy handoff to your tax professional
• Exportable year-end reports, including itemized expense summaries and estimated tax payment logs
• Educational content to keep you updated on changing tax laws, tax credits, and filing tips
• Tools that support strategic tax planning decisions ahead of year-end

With FarmRaise, your accountant gets organized, accurate records—and you get peace of mind. So next time tax time rolls around, you won’t be scrambling to track down paperwork or calculate deductible expenses. You’ll be ready to file with confidence—and maybe even get that tax refund faster.

Tap Into FarmRaise’s Free Resources—Including the Blog Farmers Trust

Good tax preparation doesn’t start in April—it starts with having access to the right information year-round. That’s why FarmRaise invests in creating educational content designed specifically for farmers, ranchers, and agricultural small business owners.

The FarmRaise blog is a go-to resource for topics that matter most when managing your operation’s finances, including:

• Tax tips tailored to farmers and rural entrepreneurs-including the burning question: Can you write off your farm dog on your taxes?
• Step-by-step guides to help organize records, categorize expenses, and interpret IRS rules
• Articles on [budgeting](https://www.farmraise.com/blog/5-common-farm-budgeting-mistakes-and-how-to-avoid-them?), [grant applications,](https://www.farmraise.com/grant-administration-software?) crop pricing trends, and more
• Insights into using tools like FarmRaise Tracks to streamline financial reporting and decision-making

Whether you’re researching what qualifies as a [deductible](https://www.farmraise.com/blog/farm-taxes-schedule-f-deductions?) expense or exploring how to get your records in shape for your accountant, our blog is designed to help you stay informed and in control.

Final Thoughts

Whether you’re submitting your taxes solo or with help from a tax accountant, taking these steps now will set you up for a smoother, smarter filing process. Your accountant will thank you, your stress will be lower, and your tax return will be stronger for it.

And remember: FarmRaise is here to walk alongside you every step of the way.

Ready to make tax season easier? Start tracking with FarmRaise today.

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