I’m not a CPA, and I don’t prepare tax returns. What I do is get the books and records ready, so the person who does prepare your return has what they need the first time.
That matters more than people expect. When records show up incomplete, your preparer has to ask, wait, and ask again. That can mean more hours, a later return, or an extension you didn’t plan on.
Every preparer has their own list, so ask yours for it. In my experience, these are the things most of them want from a small business:
Books reconciled through December 31. Every bank and credit card account should match its statements, all the way through the end of the year.
Twelve months of statements for every business bank account, credit card and loan.
A profit and loss statement and a balance sheet for the full year.
Loan details, since loan payments are part principal and part interest, and only the interest is an expense.
Payroll reports, if you have employees: year-end payroll summaries and the forms your payroll provider files.
1099s you sent and 1099s you received, including any Form 1099-K from a card processor or payment app.
Big purchases: equipment, vehicles, tools or computers bought or sold during the year, with the dates and amounts.
Your mileage log, if you use a personal vehicle for business.
Last year’s return, if your preparer is new to you.
The best time to work on this list is now, not in March. Two months of catch-up in November is much easier than twelve months in February.
Hypothetical: a contractor hands over a reconciled P&L, a balance sheet and the statements in one folder. Their preparer can start right away. Another sends a shoebox and a bank login. Same business, very different spring.
Getting records ready for your CPA or lender is one of the services I offer. If you’d like help before year-end, send me a message through the Contact page.
— Rachel, Two Miles LLC