Bookkeeping · 7 min read

How to Prepare Your Books for a CPA

A clean handoff is the difference between a $600 return and a $2,400 return. Here is exactly what to deliver so your CPA spends time on strategy, not bookkeeping cleanup.

Reconcile every account through year-end

  • All business checking and savings accounts
  • Business credit cards and lines of credit
  • Merchant processors (Stripe, Square, PayPal)
  • Loans and notes payable — confirm principal vs. interest

Deliver these reports

  • Profit & Loss for the full year
  • Balance Sheet as of 12/31
  • General Ledger (or transaction detail) for the year
  • Trial Balance
  • Fixed asset additions and disposals with invoices
The CPA-Ready Business Finance Starter Kit cover

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The CPA-Ready Business Finance Starter Kit

A practical, advisor-grade workbook for owners and founders — the foundations your CPA wishes every client showed up with. Books, taxes, cash flow, and entity decisions, in one place.

  • Monthly bookkeeping rhythm
  • Tax-ready document checklist
  • Entity & S-Corp decision guide
  • Cash flow & owner pay basics

No signup required. Informational only — consult your CPA for advice.

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Documents your CPA will ask for

  • Prior-year tax return and depreciation schedule
  • Payroll reports: W-3, W-2s, 941s, state filings
  • 1099-NEC and 1099-MISC filed and copies kept
  • Mortgage / 1098 statements for office or property
  • Mileage log and home office square footage
  • Owner distributions, contributions, and loan activity

Red flags that mean a cleanup first

If your bank balance does not match QuickBooks, if Owner's Equity has unexplained swings, or if your P&L shows negative revenue lines — pause and fix the books before filing.

Next step

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