Year-ends demand tax submissions – the time when accountants are scrambling to get all of their information together in order to file taxes for their clients.
If you’re an accountant, or if you have one working for you, it’s important to know what information is needed in order to complete your tax return.
In this blog post, we will discuss the different types of information that your accountant will need in order to complete your return.
1. Business Records
The first type of information your accountant will need are your business records. This includes items such as your income statements, expense reports, and any other financial documents that pertain to your business.
Your income statement will show your revenue and expenses for the year, which will be used to calculate your net profit or loss. Your expense report will itemise all of the business expenses you incurred during the year.
The proofs include:
- Bank Statements – to reconcile the business checking account
- Business Credit Card Statements – to document business expenses.
- Payroll Documents – to document employee compensation
- Financial Agreements – to document outstanding loans or other financial obligations. These documents will give your accountant a clear picture of your business’s financial activity for the year.
- Stock Value – if you own a business that issues stock, your accountant will need to know the value of the stock at year-end.
- Personal Records: Your accountant will need your personal records as well. This includes items such as your investment statements and any other financial documents that pertain to your personal finances.
- Business Travel Expense Receipts – if you have incurred any business travel expenses, your accountant will need documentation such as receipts and itineraries.
- Home Office Information – if you claim a home office deduction, your accountant will need documentation to support this claim.
- Other Business Expenses – There may be other business expenses that are not captured in your income statement or expense report. Be sure to provide your accountant with any receipts or documentation for these expenses.
2. External Income Records
This section comes in only if you have additional income sources. You must ensure that the information provided covers only the tax period.
- Employment Income: If employed outside the business, the accountant will need your P60, P45 forms.
- Rental Income: The accountant needs rental agreements, as well as records of income and expenses related to the property.
- Interest and Dividend Income: Interest and dividend statements from banks and investment firms are required.
- Other External Sources: If you have any other sources of external income, provide your accountant with the necessary documentation.
This is the basic information an accountant needs for year-end taxes. By providing your accountant with all of the necessary information, you can be sure that your tax return will be filed accurately and on time.
If you have any questions about what information your accountant needs, or if you need help getting your business records in order, contact us today.
Why are Asset Liabilities Important?
Asset liabilities are important because they can have a major impact on your financial security.
If you’re not careful, asset liabilities can quickly spiral out of control and put you in a very precarious financial position. That’s why it’s so important to understand the different types of asset liabilities and their financial implications.
By doing so, you can make more informed decisions about your overall financial security.
How to Use Asset Liabilities for Increased Financial Security?
Asset liabilities can either help or hurt your financial security.
Therefore, it is important to understand the difference between good and bad asset liabilities so that you can make the best decisions for your financial future.
If you have good asset liabilities, such as a mortgage or student loan debt, you can use them to improve your financial security. However, if you have bad asset liabilities, such as credit card debt or a car loan, you should try to pay them off as quickly as possible to avoid putting your finances at risk.
To conclude, asset liabilities are an important factor to consider when thinking about your financial security.
By understanding the difference between good and bad asset liabilities, you can make more informed decisions that will help improve your overall financial security.
To know more, get in touch with us today.