– Rod W. Deloe, CPA
As a business owner, the “hand-off” to your tax preparer is the most critical moment of the year. Doing it right doesn’t just save your accountant’s sanity—it saves you money, reduces audit risks, and keeps your professional fees down.
Before you hit “send” on that folder of documents, here are the 5 things you should do to ensure a seamless filing:
1. Reconcile EVERYTHING 📂
Don’t let your preparer be the one to discover that your bank balance doesn’t match your books. Ensure every bank account, credit card, and loan statement is reconciled through December 31st. If the numbers don’t tie out now, they won’t tie out later.
2. Separate Personal from Business 🚫
If you accidentally put those grocery runs or family dinners on the business card, flag them now. Moving these to an “Owner’s Draw” or “Distribution” account before handing over your books saves your CPA from playing detective (and charging you for the time).
3. Review Your “Large” Purchases 🚜
Did you buy a new piece of equipment, a vehicle, or office furniture this year? Make sure you’ve set aside the actual invoices. Your preparer needs these to properly calculate depreciation and maximize your $Section 179$ or bonus depreciation deductions.
4. Categorize “Ask My Accountant” Entries ❓
We’ve all been there—you see a transaction from six months ago and have no clue what it was. Instead of leaving it blank or guessing, try to track down the receipt or add a memo. A clean ledger is a fast ledger.
5. Finalize Your 1099s 📝
Ensure you’ve collected W-9s from all your contractors and that your 1099s have been issued. Your tax preparer will need to check the “Yes” box on your return asking if you filed the required forms.
Pro-Tip: A “shoebox” of receipts is a recipe for a high bill. Digital organization is your best friend!
Business owners: What is the one thing you’ve started doing that made tax season easier for you? Let’s share some wisdom in the comments! 👇
#SmallBusinessTips #TaxSeason #Accounting #EntrepreneurLife #TaxPrep #BusinessOwne
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