Bookkeeping and tax services for small businesses in The Woodlands and Greater Houston area.

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What tax documents should I give my bookkeeper before business tax return prep?

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.

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More Questions

How should churches and charities track donations, reimbursements and program expenses?

Churches and charities need to track contributions by donor with any restrictions noted, document reimbursements with receipts and approvals, and allocate program expenses by ministry or initiative. Good records protect the organization and maintain donor trust.

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What should be included in a monthly financial review with an external controller?

A monthly controller review should cover the month-end close, variance analysis against budget, AR/AP aging reports, internal controls check, and management-level reporting. The goal is catching issues early and giving you confidence in your numbers.

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How should boutiques reconcile POS deposits, refunds and gift cards?

Reconcile POS deposits by tracking gross sales, discounts, returns, gift cards, and sales tax separately before comparing to your bank deposit. Gift cards sold are a liability until redeemed. Merchant fees need to be tracked as expenses whether deducted from deposits or charged separately.

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Can one accountant prepare both my personal tax return and my business tax return?

Yes, and for most small business owners it makes sense to use the same preparer for both. Pass-through income, owner compensation decisions, and estimated tax payments all require coordination between business and personal returns.

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When should I move from DIY bookkeeping to a monthly bookkeeping service?

Move when DIY starts costing more than it saves. Signs include falling behind on reconciliations, not knowing your actual profit, tax deadline panic, and spending hours on bookkeeping that could go toward running your business.

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Which vendors need a 1099-NEC at year end?

Any vendor you paid $600 or more for services who isn't an employee and isn't a corporation generally needs a 1099-NEC. The key is collecting W-9 forms from vendors to determine their entity type and get correct taxpayer information.

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SRC Bookkeeping & Tax is a Woodlands-based bookkeeping and tax practice serving small businesses across Greater Houston. Founded by Shane Christenson with experience in banking, public accounting, and nonprofit finance. We help business owners keep their records organized and their taxes handled.

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