We take your monthly profit and loss statements and at the end of the year add them together to show what your taxable income is and what your total expenses were for. We put that together in a Schedule C for your federal and state income tax returns. This way, you have all of your business income and expense ready to add into your regular Form 1040 information regarding dependents, medical expenses, etc. For an extra fee, we can do your entire tax return for you, if you like. Both state and federal.