Pay Your Small Business Taxes: 7 Documents Your Accountants Requires!

Are you a small business owner in Roseville overwhelmed by paying your small business taxes? In that case, business tax preparation is the most crucial ramification of your activities if it’s not done appropriately and timely. What’s the solution? Working with a professional Roseville accountant can be the ideal solution that saves time and hard-earned money in the long run. 

Would you want to bypass laborious calculations and fretting about errors on your tax return? Outsourcing your tax preparation to a professional accountant can aid you in reclaiming your time to expand your business! However, gather the documents below that your small business accountant needs to prepare taxes to ensure a hassle-free tax season. 

• Identification Details

Your small business accountant in California will require your personal and business identification documents to generate your business tax returns. Garner the following records:

Personal Identification Information

• Social security number
• Legal name and address
• Personal identification details of the dependent

Business Identification Information

• Business entity type
• Employer identification number or EIN
• Business name and address.

• Comprehensive Financial Statements

Financial statements are the cornerstone of your tax filing, offering a snapshot of the economic condition of your business in Roseville.  

• Balance Sheet – It helps demonstrate your business’s financial position.
• Cash Flow Statement – It helps outline how money moves through your business.
• Earnings Statement – It gives you a detailed look at your expenditures and revenue.  

Such documents are precious for small business accountants, providing an in-depth overview of your business’s economic activities and helping detect significant areas that can affect your tax penalties and possible savings.  

• Last Year’s Tax Forms

Your small business accountant can better grasp your company’s structure by reviewing the previous year’s tax filings and related paperwork. You must amass the last year’s tax return if you’re working with a new tax preparer for the first time. Your accountant will assess your prior year’s taxable earnings, tax ability calculations, and any reported tax credits. Therefore, you must inform your accountant regarding any business alterations since last year’s return.  

• Particular Tax Forms by Business Structure

Based on your business structure, distinct forms will be needed. 

• Form 1065 for Collaborations, with Schedule K-1 for each collaborator.
• Schedule C for Sole Proprietors.
• Form 1120 for Enterprises.
• Forn 1120S for S-Corporations.

Choosing and filing out the apt forms precisely is vital to complying with IRS needs and ensuring your company is classified correctly and taxed.

• Expense Records

You may assist your accountant in boosting your tax deductions by offering detailed support for your business expenses. Small business entrepreneurs must garner the following documents for their tax return preparation:

• Employee wage reports and autonomous contractor payments.
• Home office expenditures.
• Depreciation estimations.
• Inventory records include cost of goods sold, purchases, and year and inventory counts. 
• Machinery, equipment, and furniture purchase history.
• Mileage and business-oriented vehicle expenditures. 

• Capital Asset Activties 

You must report any modifications in your company’s capital assets to estimate gains or losses precisely. For example, you must have the details of property or equipment purchased, sold, or traded. Therefore, informing your accountant regarding such capital asset activities allows for precise reporting of losses or gains, instantly affecting your tax commitments and probable deductions. 

• Evidence of Tax Payments

Your small business accountant in Roseville will demand papers of federal tax payments you completed during this year. You must garner proof of your quarterly earnings tax payments and any previous year’s overpayments you applied to the recent tax year. You must provide a list of the payments. Including sales taxes, property, and payroll taxes you completed, along with the federal income taxes.

Conclusion

Gathering and giving these documents to your accountant in Roseville will facilitate the tax filing process and position your business to capitalize on probable tax-saving scopes.