Small Business Tax Documentation Your Des Moines Accounting Service Will Need

If you’re a Des Moines small business owner who has decided to outsource all or part of your accounting to an accounting service, the single most important documentation the service is going to require is your tax records. Let’s examine the types of tax documentation you’ll need to hand over to your accounting service to ensure that you are currently, and will remain, in full compliance with tax authorities, both local, state and federal.

It Begins with the Personal

Your Des Moines accounting service is going to need your complete legal name, your current address and your social security number. If you have a legal business identity such as an LLC or corporation, they’ll need your Employer Identification Number as well.

Tax Return for the Previous Year

Your accounting service is going to want to understand the types of income and deductions you have claimed, and there is no better way for them to glean this information than your previous year’s tax return.

Financial Reports

Be sure and have on hand copies of your financial reports, even if they have not been professionally prepared. These include:

  • Your most current balance sheet
  • Your most current profit and loss statement
  • Cash flow analysis, if you have one

Detailed Record of Income

Your Des Moines accounting service needs to know how much revenue your business generates in order to best assist you with your taxes. You’ll want to have on hand documentation like bank statements, deposit slips and any sales invoices, if applicable.

Detailed Record of Expenses

Equally important to your Des Moines accounting service is your expenses. Are you certain you’re taking advantage of every deduction available to you? Have you, perhaps, deducted expenses that might not withstand scrutiny? Your accounting service can tell you, but they need your records. Have on hand:

  • Bills
  • Credit Card Statements
  • Receipts
  • Property tax forms
  • Interest on mortgages

Deductible Expenses

If you have a home office be sure and have the documentation that justifies the amount you are deducting. Other types of deductible expenses you’ll need proper documentation for include:

  • Mileage deductions for vehicle travel for business
  • Travel expenses including food, lodging and entertainment
  • Charitable donations

Payroll

If you’re paying employees you need to properly document all withholding and deductions. Most of the time this will require quarterly payments on estimated payroll expenses. You should have these records with you.

Inventory Records

Your most recent tax forms should have this covered under cost of goods sold. If not, bring as much detailed information as you can about any inventory you have on hand for producing goods or services.

Record of Current Assets

What types of assets have you or your business bought or sold? This can include things like property, buildings, materials and investments. Make sure you have proper documentation, including receipts and bill of sales.

Record of Current Loans

Has it ever been necessary for you to borrow money from either a financial institution or from family or friends in order to start your business, expand it or just to make ends meet? Be sure to have documentation on hand that clearly lays out the terms of the borrowing. This may include your regular payments on a line of credit or an installment loan or credit card.

If you’re operating in the Des Moines Region and need a top tier accounting service, look no further than CustomOne CFO & Controllers. For a free consultation contact them here.