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End of Year Tax Preparation – What Does Your CPA Need – Really?

It is that time of year again when you are ready to think about what you need to give to your bookkeeper or accountant. Here is a simple and easy to understand list of the paperwork and the reports that person needs to help them prepare your taxes as easily and ‘pain free’ as possible. No need to put things off this tax season.

Most accounting software programs are very much the same when it comes to running reports so you’ll find the steps below similar for other programs too. The Secret to getting this done is in setting aside a half day to do it in. If you wait you pay extra for a “Rush” job, also known as a PIA fee by all bookkeepers and accountants alike. Yes, if you procrastinate then you are an entertaining and anonymous topic of conversation at lunch meetings!

End of Year Information To Prepare For Your Accountant:

1 – All 1099/1096, W-2, W-3 Information on you and your business

2 – December Previous year and January current year Bank Statements and reconciliation reports

3 – Petty Cash reconciliations

4 – Credit Card charges and End of Year Finance Charges

5 – List of Inventory and Assets

6 – Mileage

7 – Home business Use breakouts

8 – Payroll Reports from payroll company

9 – Quarterly reporting tax forms

10 – Draw and investment or payroll information on partners or shareholders

11 – End of Year Balance Sheet, Profit and Loss Statement and Trial Balance

To Retrieve These Reports From Your Accounting Software:

1 – Open company

2 – On menu across top

Click on: REPORTS

3 – On the reports menu

Click on: Company and Financial

PROFIT AND LOSS STANDARD

4 – Pick the date range of “last fiscal year”

5 – On the reports menu

Click on: Company and Financial

BALANCE SHEET STANDARD

6 – Pick the date range of “last fiscal year”

7 – On the reports menu

Click on: Company and Financial

STATEMENT OF CASH FLOWS

8 – Pick the date range of “last fiscal year”

9 – On the reports menu

Click on: Accountant and taxes

TRIAL BALANCE

10 – Pick the date range of “last fiscal year”

11 – On the reports menu

Click on: Employees and Payroll

PAYROLL SUMMARY

12 – Pick the date range of “last fiscal year”

13 – “Run” and “Print” all these reports and make a copy for your file and your CPA

(This menu example was taken from the reports section of an accounting software program that is considered the ‘industry standard” to most CPA professionals and bookkeepers).

Now you can make that appointment with your tax person and sit back and enjoy the stories you are about to hear from those people who will wait until the last minute to get their paperwork ready and who are slamming their heads against a wall trying to get their reports done. If you took my advice then about now, you may be asking yourself… where is that wine opener anyway!?

Mischelle has owned a bookkeeping business since 1999. She has learned word of mouth marketing techniques from some of the best. Her business has taken her to several different states in the USA and Canada. A combination of experience and education helped mold Mischelle for success. If you want to learn more about Marketing you can get it here. For bookkkeeping tips, join Mischelle at her site at http://MischelleWatkins.com.

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