For any business person, preparing business tax return is a nightmarish chore. Even if you have filled and submitted your own tax returns, preparing a business one can be incredibly tough. It makes sense to hire an accountant to do this painful, but important job. The accountant will sail your company through the choppy seas of business taxes. Whatever your trade is, it is always a great idea to hire the services of an accountant.
To prepare your company’s business return, your accountant needs a few forms from your end. Do remember to take these forms with you.
Tax return of the year before
This is the most important document you must be ready with. In case you are a sole proprietor or an LLC, your accountant will fix up schedule C for the business you run. This is a component of 1040 return package, which you will personally file. It may be now clear that your accountant requires to know the information pertaining to the prior year’s 1040 so that he or she can complete the returns of this year.
State and federal forms
In case you offer services, there is a chance that you will have received a number of 1099-MISCs from individuals you worked for. Bring those documents too, along with the list of individuals you had charged for your services. Remember that not everyone will give you 1099-MISC. You must report the income regardless of whether you have received a form from them or not.
In the same manner, you may have sent the 1099-MISC forms to the independent contractors whom you have hired to work for you. Do bring those copies too, along with form 1096 that you have sent to IRS reporting the individuals to whom you have sent the 1099-MISCs.
In case you employ people, bring copies of W-2s and W-3s along with the filed quarterly payroll reports. This will be in addition to the year’s payroll summary.
As you run a business, you should have a bank account, and consequently receive monthly statements from your bank. Do give them to your accountant. The year end bank statement and the January bank statement along with the reconciliation can be very helpful in making your business return. You should also give your petty cash report valid for year end and the reconciliation.
In addition to these documents, also print out your inventory listing and financial statements to show to your accountant.