What Contractors Should Give Their Tax Preparer at Year-End

1. Reconciled year-end financial statements

Provide a year-end profit and loss statement and balance sheet from a QuickBooks file where the business bank accounts and credit cards have been reconciled through the final statement period. If any accounts remain unresolved, identify them rather than presenting the books as complete.

2. Bank, credit-card, and loan ending balances

Keep final statements available for major bank accounts, credit cards, lines of credit, and equipment or vehicle loans. These help support the balance-sheet amounts and make it easier to investigate differences.

3. Major equipment and vehicle purchases

Prepare a list of significant equipment, vehicle, trailer, or machinery purchases and disposals. Include the date, vendor, description, amount, financing information, and source documents. Do not assume the bookkeeping category alone gives the tax preparer everything needed for depreciation decisions.

4. Payroll reports and payroll liabilities

If the contractor has employees, keep the year-end payroll summaries and related payroll filings available. The bookkeeping should agree reasonably with payroll reports, and unusual payroll-tax liabilities should be identified before the handoff.

5. Subcontractor and vendor information

Maintain accurate vendor names and payment records for subcontractors. Your tax professional can advise on information-return requirements and worker-classification questions. The bookkeeping role is to make the payment history clear and supported.

6. Owner draws, contributions, and personal activity

Summarize significant money the owner put into or took out of the business and identify personal transactions that ran through business accounts. Clear owner activity helps the tax professional distinguish business operations from equity or personal items.

7. Customer deposits and unusual balances

Call attention to large customer deposits, old receivables, unusual negative balances, refunds, retainage-like amounts, or other items that do not fit the normal pattern. The books should not silently force these into revenue or expense categories without support.

8. A short open-items list

Create a concise list of anything still uncertain: missing statement, disputed charge, loan difference, unclear owner transaction, or pending customer issue. A transparent open-items list is better than an unsupported adjustment made only to make the books appear finished.

Frequently asked questions

Does my tax preparer need every receipt?

That depends on the preparer and the item. The bookkeeping handoff is generally more useful when financial statements are reconciled and major or unusual transactions have organized support. Your tax professional should tell you what documentation they require.

Should I wait until tax season to clean up QuickBooks?

A year-end cleanup is possible, but regular monthly or quarterly reconciliation usually makes the handoff faster because questions are resolved closer to when transactions occurred.

Can Plutus send reports directly to my tax preparer?

With your authorization and within the agreed bookkeeping scope, Plutus can provide reconciled financial statements and agreed supporting information to your independent tax professional.

This guide provides general bookkeeping information. Plutus Bookkeeping LLC provides bookkeeping services only and does not provide tax-return preparation, tax advice, legal advice, payroll compliance advice, or specialized construction accounting.