Every January, CPAs send their clients the same request: send us what we need for the return. Owners who keep their own books often aren’t sure what that is, and the back-and-forth can run into March.
We don’t prepare taxes, but we prepare the books that taxes are prepared from. Here is what your accountant needs for your business taxes, and what it takes to have it ready.
The short answer: for your small business taxes, your accountant usually needs a reconciled profit and loss and balance sheet for the year, December statements for every bank account, card, and loan, your payroll provider’s year-end reports, a list of contractors and what each was paid, paperwork for equipment or vehicles you bought, and a note of anything unusual.
Your year-end hand-off list
| What to send | Where it comes from | Why your CPA needs it |
|---|---|---|
| Profit and loss for the year | QuickBooks | The starting point for the return |
| Balance sheet as of December 31 | QuickBooks | What the business owns and owes |
| December statements | Your bank, card companies, and lenders | To confirm the books match |
| Year-end loan statements | Your lenders | Interest paid during the year |
| Payroll year-end reports | Your payroll provider | Wages and payroll taxes |
| Contractor list and amounts | QuickBooks and your W-9s | For the 1099s |
| Equipment and vehicle paperwork | Your files | How purchases are treated |
| Notes on anything unusual | You | So nothing is missed or misread |
First, books that are finished
A CPA can only work from the books you give them. Before anything else, the year should be complete:
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Our year-end bookkeeping checklist covers every step.
The reports
- Profit and loss for the full year, ideally with last year beside it.
- Balance sheet as of December 31.
- Unpaid invoices and unpaid bills as of December 31, if your CPA reports on the accrual basis.
- General ledger, if your CPA asks for it. Many will simply ask for access to your QuickBooks file instead.
The documents
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Ready for your CPA?
Tick the two lists above as each item is ready.
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The questions
Write down anything you’re unsure about while it is fresh: a large payment, a new kind of income, a change in how you pay yourself. A short list of questions sent with the books saves a round of emails later.
Bookkeeping mistakes that cause trouble at tax time
These are the problems that most often send a CPA back with questions:
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Each one can be fixed before the books go to your CPA, and each one is easier on your CPA’s time when it is.
Ask your CPA for their list
Every CPA works a little differently. Ask in November what they want and how they want it sent, whether that is PDFs, access to QuickBooks Online, or a secure upload link. Then build to their list.
How we work with your CPA
For our monthly clients, the books are reconciled and reviewed every month, so at year-end they are ready for your CPA. We coordinate with your CPA at year-end and during the year, and they work from the same clean numbers you do.
Frequently asked questions
Most ask for the year’s profit and loss and balance sheet, December statements for every account, year-end loan statements, payroll reports, a contractor list, and paperwork for any equipment or vehicles bought. Ask your accountant for their exact list.
Many CPAs prefer it. QuickBooks Online lets you invite your accountant as a user, so they can run the reports they need.
As early as your CPA will take it. Books finished in January leave time for questions before the deadline.
No. We keep the books and work alongside your CPA, who prepares and files your returns. Our post on bookkeepers, accountants, and CPAs explains who does what.
Start with a conversation
If you’re a Massachusetts business owner and you’d like your books ready before your CPA asks, request a free consultation. Prefer to call? 781-924-1489.