There are many things that your CPA does for your business. However, they can only do it efficiently with the required resources. So, if you have hired a CPA in Troy, MI, and want him to help your business with taxes, refer to this article. It will tell you the 8 most important things you need to give to your CPA.
Documents Your CPA Needs For Taxes
Financial Business Reports
Your CPA needs balance sheets, cash flow statements, and income statements, among other financial data, to prepare your taxes. These statements help them assess your business’s monetary and financial health annually.
Your business source of funds will be noted under W-2 and 1099 forms. It will show every income that you may have received from any source. Your CPA will need it to calculate the taxes you must pay to the IRS.
For preparing taxes for the business, CPAs will need your identification details to verify the information is yours. It will include your social security number and all the other people involved in the business. The IRS does not accept the tax returns of people with SSN and name mismatches.
Previous Tax Returns
Sharing your previous year’s tax returns is also a great document to help the CPA file your taxes efficiently. Although it is not required, it will aid in their evaluation of your company’s financial health. It will also help in expediting your tax return process.
Correct Tax Forms
Depending on the type of business, the tax form is determined. Therefore, you must share the right tax form with your CPA. You can check with your accountant or on the IRS site if you are unaware. Incorrect tax forms will lead to the rejection of your tax returns.
Tax Deduction Forms
The CPA requires tax deduction forms to reduce the overall taxable income. Different tax deduction forms exist, such as 1098, 1098-C, 1098-E, 1098-T, and 1040ES. All these forms have tax deduction information for different sources.
These are different from financial reports and consist of loan and asset information. All these documents help calculate any potential tax deductions your business may be eligible for.
To accurately calculate deductions, your CPA must verify all the expenses. Therefore, you should submit all your receipts, bills, bank and credit card statements, and mortgage and property tax forms.
Every business wants to expedite its tax return process and ensure everything runs smoothly. Hence, remember to give these essential documents to your CPA for effective tax return fillings.