What Information Does My Accountant Need To Prepare My Tax Return?

What do you need to give your accountant for small business taxes? Gathering personal information, prior year’s tax returns, payroll data, and other documents ahead of time can help you save time and money this tax season.

In this post, we’ll talk about the specific information your tax accountant needs to file your small business income taxes. We’ll also provide expert tips and tricks along the way to help make this the easiest tax season yet.

12 Things Your Accountant Needs To File Small Business Income Taxes

When it’s time to file your small business income taxes, take control by gathering these documents and information in advance.

EIN Or SSN

You will need to furnish your tax accountant with basic personal information, including your legal name, current address, and social security number. Bring your social security card to your tax appointment.

If you have an Employer Identification Number (EIN), you will need to provide that, along with your legal business name.

Prior Year’s Tax Return

Make sure to come with your previous year’s tax return. This helps the tax accountant get a better understanding of your business, and also gives quick information about the deductions your company has (or hasn’t) been taking.

Yearly Financial Business Reports

Your accountant will need copies of your basic financial reports for the year. These generally include:

• Profit and Loss Report (or the Income Statement)
• Balance Sheet
• Statement of Cash Flows

You should be able to print these basic financial reports from nearly any accounting software program. Contact your accountant or tax preparer to see if there are any additional reports they might require or find helpful.

Business Tax Forms

The tax forms your business is required to fill out depend entirely on your business type. These are the forms that may be required for your business:

• Freelancers & Sole Proprietors: 1040, Schedule C, Schedule C-EZ, 1040-SE
• Partnerships: 1065, 940, 941, 943
• S Corporations: 1120-S, Schedule K-1, 940, 941, 943
• Limited Liability Corporations (LLCs): 1065, 1120-S, Schedule K
• Single Member Limited Liability Corporations (LLCs): 1040, Schedule C, Schedule E, Schedule F

To be certain about which forms your company is required to file, visit the IRS’s Forms and Instructions for Filing and Paying Business Taxes page. Here you will find specific forms and instructions for each business type. Bring the necessary forms to your accountant to file your tax return.

Note that your tax filing date may be affected by your business structure.

Business Asset Information

Your accountant will need to know about any assets you’ve bought, sold, or depreciated during the last year. Bring receipts, documents, or reports related to your assets.

Tip: Some accounting programs have fixed asset reports or listings that you can run.

Business Loan Information

If you’ve acquired a new loan in the last year, bring the loan agreement with you. Also, bring records of any loan payments and/or accrued interest. This will ensure that your accountant is up to date on your company’s total assets and liabilities.

Income Records

To verify the income amount on your profit and loss statement, you need to provide your accountant with income records. This includes bank statements, deposit slips, and sales invoices.

Business Expense Records

For your tax accountant to verify your company’s expenses and find the correct deductions, you’ll need to bring several types of expense records, including:

• Receipts
• Bills
• Bank statements
• Credit card statements
• 1098 Mortgage Interest & Property Taxes form

Deductible Expense Information

Some business expenses require more than just receipts. If you’re claiming any of the following deductions, make sure you bring the proper information to your accountant:

• Home Office Deduction: If you have a separate home office that is used exclusively for business, you may be eligible for the home office deduction. You should be prepared to provide information about the square footage of the home/office and expenses paid for mortgage or rent payments, repairs, insurance, and utilities.
• Business Vehicle: If you use your vehicle for business, you also may be eligible for a vehicle deduction. Track all of your mileage throughout the year and bring a mileage log to your accountant or tax professional, along with any receipts related to car expenses.
• Business Travel: Businesses can write off meals and travel expenses, provided these expenses aren’t “lavish or extravagant.” Bring all receipts and any travel tickets or itineraries to your tax appointment.
• Charitable Donations: Bring all receipts and statements related to your business’s charitable donations.

Payroll Data

Your accountant or tax professional will also need your payroll data from the year. Bring copies of your employee’s W-2s, W-3s, and 1099-MISCs. Also, gather health insurance records (as these can count as a business deduction) and any information regarding bonuses.

Payroll software makes this information readily available. Check out our picks for top payroll software to make gathering this information easier come next tax season.

Opening & Ending Inventory Totals

Several tax forms require a COGS (Cost of Goods Sold) closing balance for the year. You should already have taken an opening balance of your inventory at the beginning of the year. Now do another inventory count and bring the results to your accountant so they can properly fill out your tax return.

Stocks & Bonds Information

Bring information related to all stocks and bonds your business has attained or sold during the year. You’ll also need a record of any owner’s investments made into or withdrawn from the company during the year.

Should Your Business Hire An Accountant?

You don’t have to hire an accountant or bookkeeper to file business taxes, but it is highly recommended to have a tax professional prepare your business tax return, especially if you are self-employed or a sole proprietor.

In addition to helping you file your taxes, an accountant can help you save time on financial tasks, provide in-depth analysis and reports, and help you determine if a small business loan is a smart financial move for your business.

Consider hiring an accountant for:

• Starting a new business
• Setting up your EIN and state business licenses
• Incorporating your business
• Forming an LLC
• Getting business advice
• Growing your business & planning for the future
• Managing cash flow
• Buying or selling a business
• Buying or selling business assets
• Navigating a tax audit
• Taking your business public

One of the best ways to find an accountant to file your small business taxes is through referrals from friends, family members, or colleagues. You can also use online resources such as the American Institute of Certified Public Accountants and the IRS Directory. Finally, if you use accounting software, you can often tap your software company for referrals to qualified accountants.

The Bottom Line On What To Bring To Your Tax Appointment

Taking the extra time to gather and organize the proper tax information will help make the tax return process a breeze.

To make this tax season even less painful, check out our free Small Business Tax Prep Checklist to ensure you’re fully prepared for small business tax filing.

Good luck and happy filing!

FAQs About Preparing Business Taxes