How Do I Generate Tax Reports for My Accountant? Quick & Easy Guide
Tax time can feel overwhelming, especially when you’re staring at a pile of receipts, invoices, and spreadsheets, wondering what your accountant really needs from you.
Whether it’s your first year in business or you're a seasoned entrepreneur, knowing how to generate tax reports for your accountant can simplify the process, prevent costly mistakes, and help you stay compliant with IRS requirements.
Let’s break down exactly what reports you need to prepare, how to organize your documents, and the best tools to streamline your tax preparation.
What Tax Reports Does My Accountant Need?
Your accountant needs a clear, comprehensive view of your business finances to accurately calculate taxes, find deductions, and file your tax return. Whether you’re a sole proprietor or managing a larger small business, the reports below are essential for good tax preparation.
Key Reports Your Accountant Will Likely Need:
Profit and Loss Statement (Income Statement): This shows your revenue, expenses, and net profit over a specific period.
Balance Sheet: Gives a snapshot of your assets, liabilities, and equity (finance) at a given time.
Cash Flow Statement: Tracks how money comes in and goes out of your business.
Accounts Payable and Receivable Aging Reports: Shows how much you owe vendors and how much customers owe you.
Payroll Reports: Summarizes employee’s wage, payroll taxes, and compensation.
General Ledger: A full record of all debits and credits in your accounting system.
Invoice and Sales Receipts: Used to track income and support reconciliation.
Expense Reports: Detailed breakdown of business-related costs, including reimbursement claims.
These reports ensure that your financial records are well organized and support accurate tax filing.
Documents You Need to Prepare Before Filing
Before your accountant can start the tax filing process, you’ll need to gather supporting documents. Organizing what you need to provide your accountant reduces back-and-forth and speeds things up.
Documents You Need:
Bank and transaction account statements
Credit card statements used for business use
Inventory records, if applicable
IRS tax forms, such as Form 1040 or W-2s for employees
EIN or TIN (Taxpayer Identification Numbers)
Depreciation schedules for fixed assets like property and furniture
Records of any taxes paid, including sales tax and payroll tax payments
Details of funding or any outside investment
Employment records for payroll and taxes withheld
Being diligent with records management throughout the year makes this process easier.
Pro Tip: Review the IRS recordkeeping requirements for small businesses for a comprehensive list of documents to keep.
Using QuickBooks or Xero to Generate Financial Reports
If you're using accounting software like QuickBooks or Xero, generating tax reports is just a few clicks away. These tools not only simplify bookkeeping but also help you stay compliant with IRS guidelines.
How to Use QuickBooks to Generate Reports:
Log into your QuickBooks account.
Navigate to the Reports tab.
Run key reports such as:
Profit and Loss
Balance Sheet
General Ledger
Payroll Summary
Customize the date range for the specific tax year.
Export the reports as PDFs or Excel files to send to your accountant electronically.
Xero has similar functionality with easily customizable filters to get year-end financial statements tailored for your tax accountant.
What Your Accountant Needs for Accurate Tax Filing
Your accountant needs more than just numbers — they need context to interpret those numbers correctly. Good communication, supported by clear reports, leads to more accurate tax calculations and potentially increases your tax refund or reduces liabilities.
Accountant Needs to See:
Breakdown of business income and deductible expenses
Categorized transactions (business vs. personal)
Documentation for major expenses or assets
Estimated quarterly payments made to the IRS
Payroll data including compensation and withheld taxes
Any adjustments or corrections made in your books
Having this information readily available not only supports accurate tax filing but helps your accountant identify legitimate deductions.
Expenses You Should Track All Year
Staying on top of your expenses throughout the year is crucial for tax preparation. Failing to track deductible costs could mean higher tax liabilities come tax season.
Common Deductible Expenses:
Office supplies
Rent or home office expenses
Mileage and travel costs
Software and subscription costs
Marketing and advertising
Payroll and employee compensation
Business meals (within IRS limits)
Equipment and furniture depreciation
Your bookkeeper or accounting software should categorize these to simplify reporting.
Small Business Owners: How to Get Started
If you’re a small business owner or sole proprietor in Denver, here’s how to begin preparing for tax season.
Step-by-Step Overview:
Choose an Accounting Method: Cash basis or accrual - your accountant can help you decide what’s best.
Use Accounting Software: Invest in tools like QuickBooks or Xero that offer accuracy and scalability.
Keep Everything Digital: Save your invoices, receipts, and tax forms electronically. Use a reliable records management system.
Schedule Time Monthly: Review your income, expenses, and cash flow to stay proactive.
Work With a Bookkeeper: Whether internal or outsourced, consistent bookkeeping prevents surprises at tax time.
If you're unsure where to start, contact a professional tax accountant in Denver for guidance.
Important Considerations Based on Business Type
Different small business entities have varying tax obligations and reports. Here's what to consider:
Sole Proprietor: You may need to file a Schedule C alongside your personal Form 1040.
LLC/Partnership: Additional tax forms and equity considerations apply.
S-Corp or C-Corp: You’ll deal with corporate tax requirements, including corporate balance sheets and income statements.
Your business entity influences the type of tax forms you’ll need to file, so be sure to consult your accountant.
Employment, Payroll Taxes, and the IRS
If you have employees, payroll taxes become a non-negotiable part of your business tax responsibilities.
You’ll need to submit:
Wage and compensation reports
Form W-2s and W-3s
State and local payroll tax payments
Social Security and Medicare contributions
Staying on top of employment tax requirements helps you avoid IRS penalties and interest on overdue taxes.
Streamline the Process and Stay Audit-Ready
Organizing your financial statements proactively can help you avoid a stressful tax season and keep your business audit-ready.
Tips to Simplify Tax Prep:
Reconcile your books monthly.
Back up your data, whether in the cloud or external drive.
Reference prior year taxes to spot inconsistencies.
Consult a Certified Public Accountant for tax strategy advice.
Set calendar reminders for key payment deadlines and filings.
Having an accounting system aligned with the IRS’s expectations ensures both accurate tax filing and peace of mind.
Final Thoughts: Preparing Now Pays Off Later
Generating tax reports for your accountant doesn’t need to be stressful. With accurate bookkeeping, clean reports, and consistent expense tracking, the tax filing process can feel much more manageable.
If you run into questions or need a second pair of eyes, reaching out and working with a tax accountant in Denver can offer insights and ensure you’re set up for long-term success.
So as this tax season unfolds, gather your reports, check your books, and take that important step toward confident, accurate tax preparation.
Ready to simplify your business tax prep? Start by organizing your financial reports, using bookkeeping tools like QuickBooks or Xero, and keeping communication open with your accountant. Your future self will thank you.
