Here’s What Your Accountant Needs for Your Small Business This Tax Season
- Kayli Robles
- Feb 24
- 4 min read
Updated: Feb 26
Does tax season feel a bit nebulous? Whether you’re working with an accountant for the first time or you find there’s a lot of back-and-forth each year, knowing what information your accountant actually needs can make the process far smoother.
It’s never too early to get tax-ready. Keeping a strong set of books and an organized system for your supporting documents can significantly reduce stress, save time, and help avoid costly errors during tax preparation.
If you’re just getting started, these resources may help:
In this post, we’ll walk through the essential information your accountant will likely need to prepare and file your business tax return.
1. Basic business information
Especially if you’re working with a new accountant — or if your business structure has changed — your accountant will typically want to confirm:
Legal business name (or the name you’ve historically filed under as a sole proprietor)
Business structure (sole proprietor, partnership, corporation, etc.) and for incorporated businesses, corporation type, share structure, and ownership
Tax identification numbers (EIN, or SSN if your business is registered as a sole proprietor)
Date of incorporation, if applicable
Head office and mailing addresses
If this isn’t your first year working together, be sure to flag any changes such as a legal name change, business reorganization, or address update.
When in doubt, point it out. Many filing and disclosure requirements aren’t obvious, and small changes could have tax implications.
2. Record of income
Your accountant will need a complete and accurate record of your business income. This may include:
Sales summaries from your accounting software
Income reports from payment processors (e.g., Stripe, Square, or PayPal)
A spreadsheet summarizing income earned during the year
It’s also helpful to have all of your invoices available, which often include details about the type of product or service sold, where the sale occurred, and timing.
Be sure to mention any significant changes, such as a new line of business, sales in a new state or country, or major shifts in pricing or sales volume.
Ensuring your income records are complete and accurate now can help prevent underreported income, penalties, and headaches in the future.
3. Record of expenses
To support your deductions, your accountant may request:
An expense summary from your accounting software or spreadsheet
Notes explaining items such as mixed personal/business expenses or expenses paid personally
Invoices and receipts as supporting documentation
If you use Excel for bookkeeping, you can often share the entire file. If you use accounting software such as QuickBooks, you may be able to provide limited access, a backup file, or key reports such as:
Profit and loss statement
Balance sheet
Trial balance
General ledger
Your accountant will often compare this year’s return to prior years to verify accuracy and identify possible missing deductions. You can help streamline this process by:
Categorizing expenses consistently throughout the year
Explaining significant year-over-year changes (e.g., rent increased due to an office move)
Identifying large or one-time purchases, such as tools or office equipment, and providing invoices
You may also find this helpful: Are You Missing These Common Small Business Tax Write-Offs?
4. Bank and credit card statements
Even with clean books, your accountant will typically want to review your bank and credit card statements.
If your accountant also handles your bookkeeping, these statements are essential for compiling accurate records. If you manage your own books, statements help your accountant reconcile transactions and confirm accuracy — especially for items such as owner draws or transfers.
Remember to flag any new bank accounts, credit cards opened, or accounts closed during the year.
5. Asset purchases, loans, and major business changes
Let your accountant know about:
Large asset purchases (e.g., vehicles, equipment, computers)
New loans or loans paid off during the year
Significant operational changes, such as new services, locations, or expansions
This context helps your accountant apply the correct tax treatment and reduces the likelihood of follow-up questions.
6. Payroll summaries and contractor info
If you have employees or work with contractors, your accountant will likely need:
Payroll summaries for the year
Employer tax filings
Contractor payment summaries (e.g., 1099 information, if applicable)
These help ensure that payroll and contractor payments are reported accurately and consistently across all filings.
7. Your questions and upcoming plans
Tax preparation doesn’t have to be purely transactional. This is a great time to ask questions such as:
The deductibility of certain expenses
The best way to categorize certain transactions
How to streamline your recordkeeping going forward
Whether there are any tax planning opportunities related to upcoming changes such as hiring, refinancing, or expansion
Proactive conversations help keep your business compliant while minimizing your tax bill appropriately.
How bookkeeping support can simplify tax season
Imagine heading into tax season with complete, up-to-date records and all supporting documents organized and ready to go.
Better yet, imagine working with someone who manages your numbers throughout the entire year and can coordinate directly with your accountant to provide most of what they need while you focus on running your business.
Partnering with a bookkeeper can significantly reduce time spent information-gathering and fact-finding, not just during tax season but year-round. If that sounds like a relief, I’d be happy to connect. You can book a consultation with us for a free evaluation of your books, and we’ll walk through how we can help.
