What Your Accountant Needs to File for Your Business Tax Returns (Part 1)

business owners preparing tax filing

If Americans found out they filed their taxes incorrectly, undoubtedly, most would be stressed. The biggest worry would be about getting audited. Another cause for concern would be having to pay more money. It can really be very overwhelming to prepare all the documents needed for small business taxes. Therefore, getting help from a tax expert or tax accountant would be an excellent idea. This would save time and create peace of mind. However, you don’t want to show up to your tax appointment with absolutely nothing.

In this three-part post, we’re sharing what your accountant would need from you to file your business tax returns: 

First, What Is a Business Tax Form?

A business tax form is a document that businesses use to report their income and expenses to the government. The most common business tax form is Form 1040, used by sole proprietorships and partnerships. Corporations and other business entities use different tax forms. 

Businesses use tax forms to calculate their tax liability. The amount of tax a company owes is determined by its income and expenses. Businesses must file their tax forms with the government by a certain date. If a business does not file its tax forms on time, it may be subject to penalties.

List of Documents Your Accountant Will Need From You 

Annual Financial Business Reports

One of the most important documents your accountant will need from you is your annual financial business report. This report will give your accountant a clear overview of your business’s financial situation, including income, expenses, and assets.

Your accountant will need copies of the current year’s:

Profit and Loss Report

A profit and loss report is one of the most important financial documents for a business. It tells you how much revenue your business is generating and what expenses are eating into your profits.

Balance Sheet 

This is one of the three fundamental financial statements that gauge a company’s financial health. The balance sheet provides a snapshot of what a company owns (its assets) and owes (its liabilities) at a specific time. It also reveals the company’s equity, equal to its assets minus its liabilities.

Financial Records

Every business should keep track of a few key financial records. This includes income, expenses, assets, and liabilities. Keeping accurate financial records is necessary for any business, large or small. It allows you to track your progress, make informed decisions about where to allocate your resources, and measure your financial performance over time. Your accountant will need this record to determine if you are qualified for any deductions.

Records Relating to Deductions

As a business owner, you can take advantage of several different deductions come tax time. But to take advantage of them, you must have the proper documentation. Here is a list of the records your accountant will need from you in order to help you maximize your deductions:

  • A list of all the business expenses you incurred during the year
  • Documentation to support any home office deductions you are claiming
  • Receipts or records of any charitable donations you made during the year
  • Records of any business-related travel expenses you incurred during the year


As a business owner, you need to keep good records and provide your accountant with the information they need to be able to provide you with accurate tax accounting services and file your tax returns. These are just a few of them. In the second part, we’re sharing more of what your accountant will need from you.

Ash CPA offers the services of a seasoned accountant in Framingham, MA, who can help you with your tax return preparation and more. Contact our accountants today to set up an appointment!