So You’re Going to See Your Accountant or Tax Preparer…What Should You Take With You?

List of Documents to Take With You on Your Tax Preparation Visit

Tax season is probably one of the most stressful times of the year for an entrepreneur! Are you feeling a little panic or intimidation around getting your documentation in order for your accountant or tax preparer? Do you even know what documents to take with you or what your accountant needs to see? Here’s a short list of documents to have with you for your tax preparation meeting. Disclaimer: This list is not an exhaustive list and depending on your business structure or type, other documents may be required.

1.) First before stopping by your accountant’s office, make sure that your financials are organized. Have you been keeping up with the financials all year? Have you been consistent with keying your receipts and invoices and other financial transactions into your accounting system? Are they accurate? Is all of your documentation (receipts, invoices, bank and credit card statements, etc.) in order? This is an important step and can save you tons of money in accounting fees.

2.) Any documents that you can provide to your accountant to show proof of your net profit or loss would be beneficial in keeping the accounting costs down. The best way to do this is to give him or her a copy of your income statement. This document reflects the revenue (sales) and expenses for your company throughout the whole year! The difference between those two is your net profit (income) or net loss!

3.) Also take the year’s balance sheet with you as well. This will provide the accountant or tax preparer insight into the financial condition of your business. It reflects your assets and liabilities which is simply what you own and what you owe and the balance is your net worth.  The balance sheet is also great for starting discussions around ways to improve your business in the new year.

Another tip is to take along with you a list of questions!  Your accountant is there to help and should welcome any questions you may have!

Posted on by admin in Business Finance Management

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