Which reports do I need for taxes?

Reports for taxes buttons

Gathering your documents for taxes may not be your favorite task of the year, but fear not – with the right information in hand, you can make the process way smoother for both you and your tax accountant. Here’s a guide to the reports you should gather to have what you need for your taxes.

Income Statement

Your income statement lists your business’ earnings and expenses. By providing this report, your tax accountant can assess your revenue, expenses, and profitability. The income statement provides most of the information needed to determine your taxable income.

Balance Sheet

Think of the balance sheet as your business’s financial report card. It lists what you own, what you owe, and how much the business is worth. When you provide the balance sheet to your tax accountant, they can understand your business’ financial health at a glance. They then use this information to determine your business’ net worth and see if there are any other areas not on the income statement that may affect your taxable income.

Sales and Use Tax Reports

If your business deals with taxable goods or services, ensure you include your sales and use tax reports. These documents outline your sales, applicable taxes, and collected amounts. Accurate reporting is vital to comply with tax regulations and avoid penalties.

Supplemental Reports

In addition to your balance sheet and income statement, you may want to provide supplemental reports for your tax accountant to provide them with the additional information they need. 

What types of supplemental reports should be included? Here are some examples:

  • Officer’s Salaries
  • Travel 
  • Meals
  • Gifts
  • Entertainment
  • Federal & State Taxes
  • Other Taxes
  • Miscellaneous Expenses

By providing these supplemental reports, you will minimize a long list of questions with your tax accountant.

Quarterly Estimated Tax Payments

Your tax accountant likely provided you with a schedule of estimated tax payments to pay during the year. Share records of your quarterly estimated tax payments with them. This data is crucial for ensuring that your tax accountant accurately assesses your tax liability and avoids underpayment penalties.

1099 and W-2 Forms

Got awesome people working with you? For contractors and employees, gather and provide 1099 forms for contractors and W-2 forms for employees. These forms detail the income paid to these individuals. Precise reporting ensures compliance and helps your tax accountant accurately report payments made to workers.

Collaborating closely with your tax accountant and providing these essential reports in an organized manner is the key to a stress-free tax season. With these reports in hand, you and your accountant can team up and get back to focusing on what you do best—running and growing your business. 

Do you need more tips on how to have a smooth tax season? Read our article on how paying taxes can be less painful. Happy filing!