Documents Your Accountant Requires to Prepare Business Taxes 

As your business starts to grow, managing taxes becomes a daunting tax because you are involved in a hundred other tasks. In order to avoid the hassle of calculating tax returns or making any errors, it is best to hire a small business accountant in Southfield, MI. These accountants are experienced professionals who calculate taxes efficiently. For calculating and filing taxes, your accountant will ask for different documents. This article highlights the top documents you need to submit for your small business taxes. Here we go!  

Documents your accountant requires for taxes 

1. Identification information 

To file taxes for your small business, your accountant will ask for your business and personal identification documents. You must gather records like: 

• Legal name and address
• Social Security number
• Dependents’ personal identification information
• Business entity type
• Business name and address
• Employer identification number (EIN)

2. Last year’s tax forms 

Another important document you must submit is last year’s tax returns and other supporting documents. These will help your accountant to analyze and understand the overall business structure. If you have hired a new tax preparer, you must gather last year’s tax return. Your accountant will closely review last year’s taxable income and tax credits. 

3. Business income and receipts 

To calculate your taxable income, your accountant will closely review your business receipt. As a business owner, you must compile documents like:

• Invoices and customer billings for the year
• Monthly or annual revenue reports

If you have different businesses and sources of income, gather tax forms from different income streams. 

4. Expenses records 

You must provide a detailed report about your business expenses to your accountant which will help in maximizing tax deductions. Some important records to gather by small business owners are: 

• Employee wage reports 
• Depreciating calculations 
• Home office expenses 
• Inventory records 
• Business-related vehicle cost 

5. Financial records 

Giving access to your financial record featuring your bank and credit card statement is important. This will help your accountant to prepare error-free business tax returns. Also, gather important business loan documents during the financial year. For the purpose of accurately reporting income and spending on your tax return, your accountant will consult your financial records.

Wrapping Up 

Small business owners already wear multiple hats at a time. Managing business tax becomes a complicated process. Present these documents to your accountant for a hassle-free process.