Start with reconciled books. If your books aren’t current and reconciled through year-end, that’s the first priority. Your bookkeeper can’t prepare accurate tax returns from incomplete records. Bank accounts, credit cards, and any payment processors should all be reconciled through December 31.

Payroll reports come next if you have employees. This includes your year-end payroll summary, W-2s and W-3, quarterly 941 filings, and state unemployment reports. If you use a payroll service like Gusto or ADP, you can usually download an annual payroll package that includes everything your accountant needs.

1099s work both directions. You need to provide documentation for any 1099s you’ve issued to contractors and vendors, plus any 1099s you’ve received for income paid to your business. The 1099-NEC forms should be issued by January 31, so have that list ready before then.

Sales tax and franchise tax filings matter even though they’re filed separately from your income tax return. In Texas, your franchise tax filing affects your federal return since it’s a deductible state tax. Provide copies of all state compliance filings from the year.

Asset purchases need documentation for proper business tax return preparation. If you bought equipment, vehicles, furniture, computers, or made improvements to property, gather the invoices and receipts. These items get depreciated or potentially deducted under Section 179, and your accountant needs purchase dates and costs to handle them correctly.

Loan statements should show year-end balances for any business loans, lines of credit, or equipment financing. The interest paid during the year is deductible, and the principal portions affect your balance sheet. Get year-end statements from your lender or download them from online banking.

Inventory counts matter if you sell products. Your year-end inventory value directly affects your cost of goods sold calculation and your taxable income. If you haven’t done a physical count, do one before providing your tax documents.

Prior year returns are helpful for your bookkeeper and accountant to reference. They show how things were handled previously, what depreciation schedules are in place, and what elections were made. If you’re working with someone new, provide at least the last two years of business returns.

Put everything in one folder or shared drive. Scattered documents mean things get missed. A complete packet delivered at once is easier to work with than documents trickling in over weeks. Proper business tax preparation depends on having all the pieces in one place.

If you’re not sure what you have, ask your bookkeeper what they need. Every business is slightly different. A restaurant needs tip reporting documentation. A contractor needs job cost records. A manufacturer needs detailed inventory. Your bookkeeper knows what applies to your situation and can give you a specific list.