Your tax preparer needs more than a pile of receipts or an exported profit-and-loss statement. The exact request depends on the entity, activity, ownership, and events during the year, but most small businesses can prepare by organizing identity and prior-return records, income support, expense support, balance-sheet activity, and explanations for unusual transactions.
This checklist is general information, not a complete list for every return. Your preparer should provide the final request based on your facts. The business remains responsible for the accuracy and completeness of the information supplied.
Start with prior returns, entity details, and notices
Provide the prior federal and state returns available for the business and owners when relevant to the engagement. Include entity formation details, ownership changes, identification information requested through a secure method, and any notices received from a taxing authority.
Tell the preparer about changes during the year: a new entity, a move, a sale, a new owner, a closed location, major financing, or a significant asset purchase. These events may affect the questions and documents needed.
Organize income records and reconcile the totals
Gather bank statements, merchant and payment-platform reports, sales summaries, invoices, deposit records, and the applicable information returns you received. The bookkeeping should explain how gross activity, fees, refunds, and net deposits connect.
Do not assume that one form or one bank total represents all income. Reconciliation is the process of explaining the relationship between the external records and the books, including timing differences and processor fees.
- Business bank statements for the full year
- Merchant and payment-processor annual and monthly reports
- Invoices or sales summaries
- Information returns received
- Year-end accounts-receivable detail, if used
Collect expense support and explain owner activity
The books should organize business expenses, but supporting documents may still be needed. Gather receipts, invoices, credit-card statements, travel or mileage records, and information related to a home office or other fact-specific item when applicable.
Identify owner contributions, distributions, reimbursements, and personal charges that passed through business accounts. Clear explanations help prevent owner activity from being mistaken for operating income or expense.
Document assets, loans, and balance-sheet changes
Provide purchase and sale documents for equipment, vehicles, real estate, or other significant assets. For loans, gather year-end statements, interest information, and documents showing new borrowing or refinancing.
Balance-sheet items often require more context than an income statement provides. If a loan balance, fixed-asset account, security deposit, or owner-equity account changed materially, explain the event and supply the related records.
Include reports from payroll and sales-tax providers
If other providers handle payroll or sales tax, obtain their year-end filings, liability reports, and reconciliation summaries. Those records may be necessary to reconcile wage expense, payroll liabilities, sales, and taxes collected.
ATL Bookkeeper does not provide payroll or sales-tax services. We may use the reports supplied by the professionals or platforms handling those responsibilities when they affect bookkeeping or tax-preparation work.
Reconcile before transfer—and transfer securely
Before sending the package, reconcile the bank and credit-card accounts through year-end, review the balance sheet for unexplained items, and compare the income records with the books. Create a short list of unresolved questions instead of hiding them in a general folder.
Use the secure transfer method specified by your preparer. Sensitive identity, financial, and tax documents should not be sent through ordinary email simply because it is convenient. Confirm access and naming conventions before uploading.
A well-organized package does not pretend every issue is solved. It makes the known facts, support, and open questions easy to follow.
Frequently asked questions
Is a profit-and-loss statement enough?
Usually not. The preparer may also need balance-sheet support, statements, asset and loan documents, prior returns, information returns, and explanations for material or unusual items.
Should I send original paper documents?
Follow your preparer’s instructions. Keep your own records and use an agreed secure process for electronic documents. Do not send sensitive information through an unapproved channel.
How long should I keep tax and business records?
Retention depends on the type of record and the circumstances. Review current IRS guidance and ask the appropriate professional about your specific records before destroying anything.