What information do I need before dropping off my taxes?

Can you believe it is already time to start talking about taxes? It’s true, though. Corporate taxes are due March 15 and personal income taxes are due in April. In December, I shared that one of the ways to prepare your business for the new year is to hire an accountant to help with your taxes.

Now, let’s talk about what documentation and other information you need to gather before you head off to the accountant to get your taxes done. I hope you’ve already made your appointment with your accountant and are giving them plenty of time to get the paperwork done, including the time to ask you questions.

Having the below documents completed properly will help ease the process and perhaps even save you money in reduced tax preparation fees.

All 2018 financial transactions-This includes financial transactions for all your accounts from your credit card to your cash payments. The information should be recorded in a financial document already instead of simply handing your accountant a shoe box filled with receipts! Bonus points if you have your accounts reconciled already!

All loan statements with December 31 balances-You need to know what outstanding loan debt your company has left as well as what you’ve already paid on each loan. 

Mileage reports-If you drive a lot for your business, you need to make sure you have itemized mileage reports. Reports from an app or log are best, but you might be able to resurrect some records using your calendar. Keep in mind that you will be asked your beginning and ending odometer readings for the year.

Payroll reports-You will need all year-end information including who was paid, how much was paid, and any tax or payroll tax information.

Year-end count on your inventory-If your business has any kind of inventory, you need to know how much is left over.

1099s-If you paid any contractors during the year at least $600, you must issue a 1099 to them by the end of January and must have your records of that document available for your tax reports. This is different than your payroll information!

All purchased equipment over $200-If you purchased any equipment like a computer or phone that cost $200 or more, you need to have that itemized with receipts.

List of personally paid expenses-You really need to keep personal and business expenses separate, but accidentally paying for a business expense with personal funds can be easy to do. Just make sure you have the receipt and that all your personally-paid business expenses are accounted for.

Home office information-Do you have a home office that you use exclusively for your business? You will need to know the square footage of your office space, the total office space of your home, and any information about your utilities, mortgage payments, and other home-related expenses that affect your business.

Need help?

While I no longer do tax preparations for clients, I am a highly qualified accountant. I can help you get your financial documents in order, so they are ready for your tax preparer. Are you ready for a more organized 2019? Let’s talk about how I can help you keep better records, allowing you to run your business better!