What to Send Your CPA at Tax Time | Small Business Checklist
Use this small business tax-time checklist to gather the financial reports, payroll records, loan details, and other information your CPA may need.
6/29/20268 min read
Tax season often becomes stressful for one simple reason: the information needed to prepare the return is scattered across accounting software, email, bank portals, payroll systems, and paper files.
Your CPA or tax preparer may need more than a Profit and Loss statement. They may also need year-end loan information, payroll reports, asset purchase records, details about owner transactions, and explanations for anything unusual that happened during the year.
The exact request will depend on your business and tax structure, so your tax preparer's organizer or document list should always come first. Still, this checklist will help you prepare for the most common requests and identify missing information before it causes a last-minute scramble.
Start With Books That Are Actually Ready for Tax Preparation
Generating reports is easy. Making sure the numbers behind those reports are complete and reliable is the important part.
Before your books are handed off for tax preparation, confirm that:
All business income and expenses for the year have been recorded.
Every business bank and credit card account has been reconciled through the final statement date of the year.
Loan and line-of-credit activity has been recorded, with principal and interest separated when available.
Payroll activity and related liabilities agree with the payroll records.
Customer deposits, sales tax, gift cards, payroll liabilities, and other balance-sheet accounts have been reviewed when applicable.
Owner contributions, draws, distributions, reimbursements, and personal expenses paid by the business have been clearly identified.
Duplicate, uncategorized, or unexplained transactions have been resolved.
Accounts receivable, accounts payable, and inventory records are current if your business tracks them.
A bank balance that matches the statement does not automatically mean the books are correct. Reconciliation is essential, but the underlying transactions must also be complete and categorized appropriately.
The Three People Involved, and What Each One Does
Tax preparation tends to move more smoothly when everyone understands their role.
Business owner: Provides records and explanations that do not live in the accounting system, answers questions, and reviews the return before filing.
Bookkeeper: Keeps the books current, reconciles accounts, organizes financial activity, prepares reports, and flags items that need the owner's or CPA's attention.
CPA or tax preparer: Determines tax treatment, makes tax-specific adjustments, prepares the return, and provides tax advice.
Good bookkeeping supports tax preparation, but it does not replace the judgment of a qualified tax professional.
Financial Reports Your CPA May Request
Once the year is closed, your CPA or tax preparer may request some or all of the following:
Profit and Loss Statement
The Profit and Loss statement summarizes the business's income and expenses for the year. Review it for unexpected negative amounts, unusually large changes, duplicate categories, or accounts that do not make sense.
Balance Sheet
The Balance Sheet shows the business's assets, liabilities, and equity at year-end. Old balances, negative asset accounts, uncleared payments, unexplained loans, and undeposited funds can signal that more review is needed before preparing the return.
General Ledger or Transaction Detail
This report shows the transactions behind the totals in the financial statements. Your preparer may use it to review particular accounts or investigate an unusual balance.
Trial Balance
Some tax professionals request a trial balance because it provides the ending balance of every account in one report.
Prior-Year Comparison
A comparison with the previous year can make large or unexpected changes easier to spot and explain. It is not always required, but it can be useful during the year-end review.
Your tax preparer may prefer reports as PDFs, spreadsheets, or through accountant access to QuickBooks Online. Ask before sending files so you provide the information in the format they actually use.
Documents and Details to Gather Outside QuickBooks
Even well-maintained books will not contain every piece of information needed for the return. The business owner may need to gather the following items separately.
1. Prior Returns and Business Changes
If you are working with a new tax preparer, provide the prior-year business return and any depreciation or fixed-asset schedules you received with it. Also report significant changes such as:
A new owner, partner, or ownership percentage
A change in legal name, address, or entity structure
The purchase, sale, or closure of a location
A new election or tax notice received during the year
The purchase or sale of all or part of a business
Do not assume your tax preparer already knows about a change because it appears somewhere in the books.
2. Year-End Bank, Credit Card, and Loan Records
Your preparer may request December statements or statements covering the final day of your fiscal year. For loans and lines of credit, gather year-end statements and any lender-provided interest information.
For a new loan, also provide the loan agreement or closing statement so you can identify fees, interest, and principal correctly. If a loan was refinanced, forgiven, or paid off during the year, explain what happened.
3. Income Records Not Already Reflected in the Books
Gather tax forms and annual summaries related to business income, including Forms 1099-K, 1099-NEC, 1099-MISC, and other income documents you received.
Compare these forms with the books—don't automatically add them to income a second time. Merchant processor and third-party platform forms may report gross amounts that are already included in recorded sales.
Tell your bookkeeper or preparer about cash sales, barter transactions, owner-paid business income, or income deposited into a personal account so they can determine whether anything is missing.
4. Payroll and Contractor Records
If the business had employees, your preparer may request:
A year-end payroll summary
Copies of Forms W-2 and W-3
Federal payroll tax filings, such as Forms 941 or 944 and Form 940
State payroll and unemployment filings
Details of payroll tax balances or notices
Health insurance, retirement plan, or other benefit information requested by the preparer
For independent contractors, gather the contractor payment report and copies of the Forms 1099 issued. Let your tax professional know immediately if required forms may have been missed or if a worker's classification is uncertain. Your CPA or qualified payroll professional should determine the appropriate filing or correction.
5. Equipment, Vehicles, and Other Assets
Provide records for major purchases such as equipment, furniture, computers, vehicles, leasehold improvements, or real estate. Useful documents include invoices, purchase agreements, financing documents, and the date each item was placed in service.
Also identify assets that were sold, traded, discarded, damaged, converted to personal use, or taken out of service. A purchase disappearing from the bank account does not tell the tax preparer what was bought or how it was used.
6. Inventory Information
Businesses that maintain inventory may need a year-end inventory count and valuation information. Your CPA should tell you what method and documentation are required for the return.
Keep the physical count, valuation support, and notes about damaged, obsolete, wasted, or donated inventory. Compare the number in the accounting system with the actual inventory on hand rather than carrying it forward automatically.
7. Owner Transactions and Personal Items
Prepare an explanation of money the owner put into or took out of the business. This may include:
Contributions or additional capital
Draws or distributions
Shareholder or partner loans
Business expenses paid personally
Personal expenses paid from a business account
Owner reimbursements
Don't guess these transactions during tax preparation. Clear documentation helps the bookkeeper record them properly and gives the CPA the information needed to determine their tax treatment.
8. Vehicle Use, Home Office, and Estimated Payments
Vehicle mileage, home-office details, and estimated income tax payments may not appear in the business books. Your tax preparer may ask for mileage logs, business-use calculations, home expenses, or payment confirmations.
Estimated income tax payments for sole proprietors and owners of pass-through entities are often made personally rather than treated as business expenses. Provide the payment dates and amounts to your tax preparer and follow their instructions about where the payments should be recorded.
9. Unusual or One-Time Events
Write a short explanation of any transaction that a person unfamiliar with the business might not understand. Examples include:
Insurance proceeds
Grants or relief payments
Lawsuit settlements
Debt forgiveness
Large refunds or chargebacks
A casualty or theft loss
A major customer balance that may not be collectible
A new lease, buyout, or early termination
Money transferred between related businesses
It is much easier to answer these questions while the details are still fresh.
Restaurant, Bar, Café, and Food-Business Add-On
Food and beverage businesses have several year-end details that do not always appear clearly in a standard checklist. In addition to the items above, your bookkeeper or tax preparer may need:
Year-end POS sales summaries by location and revenue category
Merchant processor statements and Forms 1099-K
Third-party delivery and online-ordering annual summaries
Sales tax returns and the amount of sales tax payable at year-end
Gift card sales, redemptions, and outstanding gift card liability
Tip reports, payroll summaries, and records of tips paid or distributed
A physical food and beverage inventory count at year-end
Details of waste, spoilage, complimentary meals, and other inventory adjustments when tracked
Records of cash paid to entertainers, contractors, or temporary workers
Explanations for significant cash overages, shortages, refunds, voids, or chargebacks
The POS, payment processor, payroll system, delivery platforms, bank deposits, and QuickBooks records should tell a consistent story. When they don't, investigate the difference rather than pushing it through as a single unexplained adjustment.
A Practical Small Business Tax-Time Checklist
Use your tax preparer's organizer as the final authority, but this list is a helpful starting point.
Books and Financial Reports
Bookkeeping complete through year-end
All bank and credit card accounts reconciled
Profit and Loss statement reviewed
Balance Sheet reviewed
General ledger, trial balance, or other requested reports prepared
Loan, payroll, sales tax, and other liability balances reviewed
Owner transactions identified and explained
Accounts receivable, accounts payable, and inventory reviewed when applicable
Supporting Documents
Prior-year return and depreciation schedules, especially for a new preparer
Year-end bank, credit card, loan, and line-of-credit statements
Income forms and annual processor summaries
Payroll reports and employment tax filings
Contractor payment reports and copies of Forms 1099 issued
Asset purchase and disposal records
Year-end inventory count and valuation support, if applicable
Vehicle, home-office, and estimated-payment records requested by the preparer
Tax notices and records of business or ownership changes
Notes explaining unusual or one-time transactions
Final Questions
Did I use my preparer's secure portal or requested delivery method?
Did I provide explanations instead of making the preparer guess?
Did I tell the preparer about anything that happened outside the accounting system?
Do I know which questions still need an answer and who is responsible for each one?
What Usually Delays Tax Preparation
The same issues tend to create delays year after year:
Bookkeeping that stops several months before year-end
Unreconciled bank, credit card, or loan accounts
Personal and business spending mixed together without explanation
Missing payroll reports or contractor information
Asset purchases recorded only as vague expenses
Inventory balances that were never compared with a physical count
Large or unusual transactions with no supporting documents
Files sent in several separate emails instead of through the preparer's requested system
If your books are not ready, tell your CPA early. It is better to identify a cleanup need before the tax preparer begins working than after questions and deadlines start piling up.
Do You Need to Send Every Receipt to Your CPA?
Usually, your tax preparer will not need every receipt simply to begin preparing the return, but you should follow their instructions. You are still responsible for keeping records that support the income and expenses reported.
The IRS explains that supporting business documents can include invoices, receipts, deposit information, account statements, and proof of payment. Keep those records orderly and secure, even when they are not included in the initial tax-preparation package.
Related IRS guidance:
The Goal Is a Clean Handoff, Not a Box of Documents
Your CPA should receive more than a pile of statements and receipts. They should receive financial reports supported by reconciled books, along with the separate documents and explanations only you can provide.
That clean handoff saves time, reduces unnecessary back-and-forth, and gives your tax preparer a stronger foundation for preparing the return. More importantly, the same organized bookkeeping that helps at tax time also gives you more useful financial information throughout the year.
Need Help Getting Your Books CPA-Ready?
TrueCount Services provides personalized monthly bookkeeping for owner-led businesses throughout Greater Nashville and remotely. I keep your accounts reconciled, your records current, and your financial reports organized so tax time does not begin with months of unfinished bookkeeping.
I specialize in restaurants, bars, cafés, bakeries, food trucks, caterers, and other food and beverage businesses, and I also serve small businesses in other industries.
Learn more about monthly bookkeeping or request a free consultation to talk about what is happening in your books and what support you need.
This article provides general educational information and is not tax or legal advice. Your CPA or qualified tax professional should determine the tax treatment of specific transactions and tell you which records are required for your return.