How to Get Your Information Ready for Your Tax Accountant (Small Business Style)

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By Maja Ledgerwood
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Don't become overwhelmed preparing your financial statements.

Ahh...Tax time again, for small business owners this can be a stressful and uncertain time of the year. Many small business owners choose to hire a tax accountant to prepare their taxes to assure that all of the appropriate deductions are made and the information filed with the IRS is accurate and professional. Following these simple steps will assist a small business owner to have a positive, effective and time saving first meeting with their tax accountants.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

Your receipts for expenses and earnings.
Employee records (if any).
Check account statements.
Credit card and/or loan statements.
Calculator
Patience-and lots of it!

Step 1

Preparation on your part will save time in the long run.

If you plan to go to your accountant with all of your receipts and papers to go through and add up, think again. Most accountants have too much to do in too little time, especially around tax season to try to do all of the work for you. Keep in mind that they are only human as well, and have a clear understanding of what your accountant will need from you when you come to your appointment. A little bit of preparation on your part will go along way to ensure your taxes are completed within a timely manner.
Step 2

Separate your receipts into earnings and expenses categories.

Gather all of your receipts, invoices, checking and savings accounts printouts. Separate your receipts and printouts into two categories: Expenses and earnings.
Step 3

Figure your earnings for the year.

Add up all of your earnings. Make sure you double check your figures with any computer program (such as quickbooks) and your bank statements to verify your earnings for the year.
Step 4

Figure your expenses for the year.

Next, figure out all of your expenses for the year which may include trips, business meals, employee payroll, materials, fuel, etc. Add up each of the expenses and keep expenses in five or six major categories to make reading your financial sheet easier. For example, you may put the expenses for fuel, your business truck loan, and business truck repairs under the same category which you may call "TRUCK".
Step 5

Type out your

Type a "Financial Overview Sheet" in which you have your total earnings and expenses listed on one organized sheet. Of course, you will want to take all of your paper work with you when you go see your accountant in case there is something that needs to be verified.
Step 6

Find out what other information your accountant might need.

Make sure you write down any other needed items from your accountant when you are in the meeting with him/her. Now is the time to write it down so you can get your accountant what additional information is needed as quickly as possible so that the accountant can complete your tax returns in a timely manner.

Comments

wltw said

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on 4/19/2009 Great tips on how to get your information ready for your tax accountant! Well done!

our5kids said

on 3/22/2009 Thank you this is a great article on How to Get Your Information Ready for Your Tax Accountant 5*.

sanderdoe said

on 3/21/2009 Thank you for this helpful information! I'm just getting ready to do our small business taxes and your suggestions are going to make it a whole lot easier. I will bookmark this page. 5* R