Documents an Accountant Needs to File Your Business Taxes

Preparing small business taxes doesn’t have to be overwhelming. Come tax season, you may wonder: What do i need to file my business taxes? Join our Raleigh-area CPAs as they share all documents you need on hand.

Join C.E. Thorn, CPA, PLLC, a Raleigh-based small business accounting firm, as we explore what tax forms business owners should file and what documents are needed to do so. By preparing yourself with this knowledge you can gain insight to maximize tax deductions and stay compliant with federal income tax, employment taxes, and local taxes.

Disclaimer: Information presented on this website should not be construed as formal accounting or tax advice or the formation of an Accountant/CPA-client relationship.

What Do I Need to File My Business Taxes?

Are you asking, "What do i need to file my business taxes?" If so, you're in the right place. Use this roadmap to gather the business tax documents your certified public accountant will request in order to file your state and federal taxes related to your business.

Identification and Business Profile

These items establish who you are, how your business is taxed, and which tax forms apply. Getting this right prevents misfilings and delays.

What to Provide

• Legal business name and business entity structure (sole proprietorship, LLC, partnership, S corporation, C corporation)
• Employer Identification Number (EIN) and business address
• Owner information (names, Social Security numbers, ownership percentages)

Why It’s Needed

• Confirms the correct tax forms and whether a separate corporate tax return applies
• Ensures IRS/state filings match your official records

How to Prepare

• Verify the EIN on IRS CP 575 or a prior notice
• Confirm ownership changes in your operating/shareholder agreements

Prior-Year Returns and Tax Notices

Last year’s filings are your starting point. They inform carryovers, elections, and any adjustments that affect this year.

Core Financial Statements and Ledgers

Your financials are the backbone of the return. They show business income, expenses, assets, and liabilities at year-end.

What to Provide

• Year-end financial statements, including Income Statement (P&L), Balance Sheet, Cash Flow
• General Ledger and Trial Balance at year-end
• Inventory valuation reports and fixed asset/depreciation schedules

Why It’s Needed

• Supports business income, expenses, and balance sheet tax adjustments
• Drives deductions, Section 179/bonus depreciation, and book-to-tax reconciliations

How to Prepare

• Close the books and reconcile all accounts through year-end
• Update fixed asset schedules for new purchases and disposals

Income Records (W-2/1099, Sales, Banking)

These records capture every dollar that came in, from payroll to sales to investment activity.

What to Provide

• W-2s and 1099s (NEC/MISC/INT/DIV/B)
• Sales summaries from POS/e-commerce and payment processors (Stripe, PayPal, Square)
• Bank statements and credit card statements for all business accounts
• Cryptocurrency transaction history (by exchange/wallet)

Why It’s Needed

• Ensures all business income is reported and 1099 compliance is met
• Verifies deposits and sales tie to your financial statements

How to Prepare

• Reconcile merchant processor totals to your P&L
• Export crypto gain/loss reports for the full tax year

Expense, Deduction and Credit Support

Proper documentation maximizes legitimate business deductions and supports credits while reducing audit risk.

What to Provide

• Receipts/invoices for ordinary and necessary business expenses
• Mileage log and vehicle details; home office square footage and allocable costs
• Asset purchase documents (date, description, cost, placed-in-service date)

Why It’s Needed

• Substantiates deductions and qualifies items for depreciation or expensing
• Supports allocation between personal and business use

How to Prepare

• Attach digital receipts to transactions in your accounting system
• Summarize home office expenses (rent/mortgage interest, utilities, repairs, insurance, property tax)

Payroll and Employment Taxes (If You Have Employees)

Payroll affects both your income tax return and your employment tax compliance. Totals must match quarterly filings.

Estimated Payments, Extensions, and Credits

Proof of payments ensures you get full credit for taxes already paid and avoids underpayment penalties.

What to Provide

• Federal and state estimated tax payments (dates and amounts)
• Extension payment confirmations and prior-year overpayments applied forward

Why It’s Needed

• Prevents underpayment penalties and ensures accurate refund/balance due

How to Prepare

• Provide vouchers, canceled checks, or portal screenshots documenting payments

Sales Tax, Excise Taxes, and Local Taxes (If Applicable)

Many small businesses owe non-income taxes. These filings confirm compliance and affect your tax presentation.

What to Provide

• Sales tax returns and payment confirmations
• Industry excise tax filings (e.g., communications, motor fuel)
• City/county business license tax filings

Why It’s Needed

• Confirms proper treatment of collected/paid taxes and related deductions

How to Prepare

• Reconcile reported taxable sales to POS/accounting reports
• Note any new jurisdictions or filing changes

Loans, Leases, and Other Agreements

Debt and leasing impact interest deductions and year-end balances on your return.

What to Provide

• Business loan and equipment lease agreements; year-end lender statements
• Interest paid details and amortization schedules

Why It’s Needed

• Separates principal vs. interest, supports balance sheet accuracy, and interest deductions

How to Prepare

• Match year-end balances to lender statements and update your books accordingly

Entity-Specific Documents and Schedules

Requirements differ by entity type; these schedules ensure owners and entities are taxed correctly.

What to Provide

• Partnerships/LLCs taxed as partnerships: Form 1065 workpapers and Schedule K-1s
• S corporation: Form 1120-S workpapers, shareholder payroll details, and K-1s
• C corporation: Form 1120 workpapers and dividend records (if any)

Why It’s Needed

• Determines who pays taxes on business income (entity vs. owners) and ensures correct pass-through reporting

How to Prepare

• Confirm ownership percentages, shareholder/partner changes, and reasonable compensation (for S corporation owners)

Social Security and Medicare Taxes (FICA)

If you have employees—or an S corporation paying shareholder wages—your return must reconcile wages paid with FICA withholding and deposits.

What to Provide

• Forms 941 (or 944) and 940 for the year
• W-2/W-3 year-end reports and state wage/unemployment filings
• Year-to-date payroll registers showing Social Security and Medicare withheld and employer match, plus EFTPS/state deposit confirmations
• Employer Identification Number (EIN) and any state payroll account numbers

Why It’s Needed

• Confirms that Social Security and Medicare amounts withheld and deposited match reported wages
• Prevents IRS/SSA mismatches between W-2/W-3, Forms 941/944, and the business return; supports payroll expense deductions

How to Prepare

• Reconcile each Form 941/944 to YTD payroll registers and W-2/W-3 totals
• Match EFTPS/state deposit confirmations to quarterly liability amounts; keep related bank statements available
• Verify EIN/state IDs are correct and include any taxable fringe benefit adjustments in year-end totals

Benefits of Working with a Small Business Tax Accountant

Now that we've thoroughly addressed your question: What do i need to file my business taxes?, let's dive into the benefits of working with a small business accountant. A dedicated tax accountant can give your small business clarity, accuracy, and a year-round strategy. Beyond tax prep at tax season, a tax professional may help you seek to identify and maximize allowable tax deductions, and inform you of important deadlines. Check with your local accountant to confirm whether or not your small business accounting needs are within their scope to avoid surprises.

Identify Deductions That May Lower Your Tax Rate

A CPA who does small business tax preparation can seek to identify and maximize allowable deductions and credits you might miss, tying them to your financial records. They may review your financial statements, bank statements, and credit card statements to substantiate allowable expenses, potentially reducing taxable business income and improving net income/net profit on your income tax return.

Confirm the Business Entity and Correct Forms

Your business structure drives what you file and how you’re taxed. A CPA may evaluate sole proprietorship, S corporation, or C corporation status, confirms your employer identification number, and ensures you use the correct forms—from Schedule C to Forms 1065, 1120-S, or 1120—so your tax filing matches your operations. Check with your local accountant to confirm whether or not business entity evaluation is within their scope before beginning services.

Plan and Pay Estimated Taxes with No Surprises

Quarterly estimated taxes keep penalties at bay and smooth cash flow. Your accountant may be able to project profits, set payment amounts and due dates, and reconcile prior overpayments—so filing business taxes at year-end is predictable. Check with your local accountant to confirm whether or not profit projections and overpayment reconciliation is within their scope before working together.

Get Federal, State, and Local Compliance Right

There’s more than income tax. Many businesses owe sales tax, excise taxes (e.g., motor fuel or certain retail sale activities), property tax, and other local taxes. A tax professional identifies where a tax applies, registers you properly, and aligns filings so everything reconciles to your books and return.

Payroll and Contractor Compliance

Wages paid to employees and 1099s for independent contractors may trigger complex rules. Your accountant may tie payroll to returns, and withhold and remit Social Security and Medicare. They may issue W-2s/1099-NEC on time and keep worker classification clean to avoid audits. Check with your local accountant to confirm whether or not this is within their scope.

Coordinate Business and Personal Returns

For many business owners, pass-through activity flows to personal income. A small business CPA may coordinate the entity return with your personal income tax return, optimizing salary vs. distributions for an S corporation, or SE tax exposure for a sole proprietorship, to manage your overall tax obligations. Check with your local CPA to confirm whether or not they coordinate business and personal returns.

Clean Books for Secure Filing

Accurate books reduce risk and speed preparation. Your accountant may reconciles accounts, documents assets, and organize business records so your return is audit-ready and supported by the same numbers you use to run the company.

Identify Errors to Ensure Compliance

Errors and omissions are costly. A certified public accountant applies current tax laws, double-checks forms and elections, and ensures deadlines are met—ensuring compliance and reducing risks associated with inaccurate filings.

Ongoing CPA Guidance

Ongoing guidance helps you plan compensation, time capital purchases, and model entity changes—exploring strategies to potentially reduce your tax liability while ensuring compliance. At C.E. Thorn, CPA, PLLC, we work with clients on a monthly basis to provide financial statements and other small business accounting needs that are important come tax filing time.

Save Time and Reclaim Focus

With a professional handling returns, notices, and schedules, a small business owner focus on their business while the accountant handles filings.

Frequently Asked Questions

What documents do I need to file my business taxes?

Start with IDs/EIN, prior-year tax return, financial statements, bank statements, credit card statements, income forms (W-2/1099), expense receipts, payroll filings, estimated tax payments, and any sales tax/excise taxes records.

What do I need to file business taxes if I’m a sole proprietorship?

You’ll file Form 1040 with Schedule C and usually Schedule SE for SE tax. Bring the full checklist above since business activity flows to your personal income tax return.

Do I need a small business tax accountant or can I file myself?

Many small business owners can save time and reduce risk by using an accountant for business taxes/small business tax advisor who understands tax laws and entity-specific filings.

What do I need to file taxes for my business if I paid contractors?

Collect W-9s, totals paid per contractor, and file 1099-NEC if thresholds are met. Keep proof of payments and any backup for services rendered.

Do LLCs file a separate corporate tax return?

Single-member LLCs typically file Schedule C with the owner’s 1040 (no separate return). Multi-member LLCs file Form 1065. LLCs electing S corporation or C corporation status file 1120-S or 1120 (a separate corporate tax return).

How do employment taxes work for my business?

If you have employees, file payroll returns (941/944, 940), issue W-2/W-3, and withhold/submit Social Security and Medicare. Owners in pass-throughs may owe SE tax; S corporation owners on payroll pay FICA on wages.

What if my business collects sales tax or owes excise taxes?

Include sales tax reports and payment confirmations. Certain industries owe excise taxes (for example, motor fuel). Your business accountant will confirm which tax applies.

Contact Our Raleigh Small Business Tax Prep CPA

Our Raleigh small-business CPAs organize your records, confirm the right forms, optimize deductions, and plan estimated taxes—so filing business taxes is accurate and on time.

Call  919-420-0092 today or request a consultation by filling out our contact form below to get started.