Your CPA and/or tax preparer needs good information in order to prepare accurate taxes or financial statements at year-end. Providing records from your accounting system is not enough – these professionals will need to verify the accuracy of the numbers and make sure that all business-related transactions are accounted for properly. To make this task easier, here is a short list of items that most CPA’s or tax preparers will need to see. Now is a good time to start gathering this documentation!
- Bank, credit card, and loan statements – at least the final one of each for the year
- Mileage log and/or receipts or listing of actual auto expenses for vehicles used for business purposes
- Payroll records including all quarterly and annual payroll reports filed with federal and state agencies
- Receipts or listing of expenses for your home if taking the home office deduction – be sure to include maintenance, repairs, taxes, and insurance payments
- Information for any new loans entered into during the year or security deposits paid
- Listing of fixed assets (typically larger purchases like computers, furniture, cars, etc.) purchased and disposed of – be sure to include dates & amounts
- Listing of money an owner, member, or partner put into the business from personal funds and took out of the business (as draws or distributions)
- Accounting of any insurance expenses paid out of business funds for an owner, member, or partner – be sure to include all types of insurance such as disability, life, health, dental, vision, etc.
- Receipts for any business expenses paid by an owner, member, or partner out of personal funds, especially if those amounts were not reimbursed to the person by year-end