The end of the year is only a few months away, which means it’s time to start preparing to file your personal or small business taxes. For many people, filing their returns is a stressful, time-consuming process—but knowing which documents you need in advance can make the process much easier and faster. Your accountant will need the following documentation, whether you’re filing a personal or business return.

What an Accountant Needs to Prepare Your Tax Filing

1. Wage Statements

If you only have a single source of income, you only need a W-2 from your employer detailing your wages and earnings. Independent contractors, on the other hand, need to submit a 1099 detailing their income from all clients who paid more than $600.

2. Investment Statements

Taxpayers who maintain an investment portfolio will need account statements detailing any losses or gains throughout the year. Your accountant will review this information to determine whether you owe additional taxes or are eligible for any deductions.

3. Business Earnings Statements

Business owners need to provide a profit and loss statement that contains your gross profits for the year, minus the cost of production and other operating expenses. Financial reporting can be complex, so you may want to give the accountant raw data and have them prepare the document.

4. Receipts for Deductions

If you itemize deductions, bring receipts for any applicable expenses, including medical care, business expenditures, and eligible charitable donations. State sales tax, student loan interest, and mortgage interest payments are also tax deductible, so bring all records related to these expenses.

Clark W. Terrell, CPA is one of the most reliable accountant firms in southeast Arkansas, offering fair pricing and a comprehensive range of services to individuals and businesses alike. Whether you need payroll services at work or a skilled professional to help you develop a year-round tax plan, this Crossett-based team will provide effective advice and highly personalized service. To learn more about their work, visit the firm online, and call (870) 364-5006 to schedule an appointment. Like them on Facebook for more tax tips and advice.