Tax time for your business can be a tedious process. As a result, about 70% of business owners hire tax professionals for tax preparation. These individuals are quite familiar with the tax processes and codes. This means hiring them will save you a lot of time and money that you can then dedicate towards other business issues. However, there are certain documents that you should bring to your CPA accounting firm during tax time. Read on to find out more.
These are very crucial documents that are needed to verify the income amounts on your profit and loss statements. It is therefore important to provide your CPA accounting firm with your business income records. They may request copies of bank statements, deposit slips, or sales invoices. It’s important to ensure you record all the money that gets into your business on a daily basis so that you can easily present this information when it’s needed later.
Apart from your income records, you will also need to supply the CPA accounting firm with your business expenses so they can verify expenses and correct deductions. There are several types of expenses that might be required, including receipts, bills, credit card statements, and bank statements. This is why it’s important to always file these expense records. Your accountant will be grateful, and you will save money as well since they won’t have to dig too much into your finances. You must also ensure that you have all the deductible expense information on file. For instance, you might need to present things like mileage logs, charitable donations, and home office deductions.
It’s important to provide your accountant with the previous year’s returns. This information can be used to handle particular deductions without having to call you all the time. This can also be quite handy when you have just started working with a new CPA accounting firm. This might also be a good time to go over any grey areas on the previous tax returns.
This is some of the information that you need to take to your CPA accounting firm. It’s crucial to keep detailed records of what happens in your business on a daily basis so that you won’t struggle come tax time. If you need to find out more about the information needed by your CPA accounting firm, get in touch with us today.
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