What You Will Need To Bring With You
Preparing your small business taxes can be a daunting task, so hiring an accountant or tax expert is a great way to save time and create peace of mind this tax season. However, you don’t want to show up to your tax appointment empty handed. Accountants expect you to bring certain documents and be prepared with the information that is needed to complete your tax return.
Personal Information
You will need to furnish your basic personal information including your legal name, current address, and social security number. The easiest way to provide this information is to bring your social security card to your tax appointment.
If you have an Employer Identification Number (EIN), you will need to provide it, along with your legal business name.
Previous Year’s Tax Return
Make sure to come with your previous year’s tax return. This 1) helps them get a better understanding of your business and 2) gives quick information about the deductions your company has (or hasn’t) been taking.
Financial Business Reports
We will need copies of your basic financial reports. These include:
- Profit and Loss Report (or the Income Statement)
- Balance Sheet
- Statement of Cash flows
The profit and loss report shows your business’s overall profit or loss for the year, while the balance sheet displays your company’s assets and liabilities. The statement of cash flows shows all transactions affecting your business’s cash account. Contact us to see if there are any additional reports that might be needed.
Tax Forms
The tax forms required depend entirely on the business type. These are the forms that may be required for your business:
- Freelancers and 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
Asset Information
Your accountant will need to know about any assets you’ve bought, sold, or depreciated during the last year. Bring any receipts, documents, or reports related to your assets and fixed assets.
Loan Information
You’ll also need information on your business’s loans. 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 will need to provide us with your income records.
Expense Records
In order for us to verify your company’s expenses and find you the correct deductions, you’ll need to bring several types of expense records as well, including:
- Receipts
- Bills
- Bank statements
- Credit card statements
- 1098 Mortgage Interest and Property Taxes form
Be sure to keep these expense record, especially your company’s business receipts, well organized.
Deductible Expense Information
Some business expenses require more than just receipts. So if you’re planning on 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.
- Mileage Log: If you use your vehicle for business purchases, you also may be eligible for a vehicle deduction. Be sure to track all of your mileage throughout the year and bring this log with you, along with any receipts related to car expenses.
- Travel: Businesses can write off meals, travel, and entertainment expenses, so be sure to bring all receipts and any travel receipts or itineraries to your tax appointment.
- Donations: If your company makes charitable donations, be sure to bring all documents related to your donations, including receipts and any statements you may receive.
Payroll Data
We will also need your payroll data from the year. Bring copies of your employees 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.
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 2017. Now do another inventory count and bring the results to your accountant so they can properly fill out your tax return.
Other Items
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. Square says:
As the owner of a sole proprietorship or LLC, you probably pay yourself by making withdrawals from the business. We will need to know about these withdrawals made to you personally, plus any information on any investments made by you.
Contact us before your appointment to see if there is any other information that might be required.