The specific records needed depend on the business and the services being performed. In general, the accountant should receive enough documentation to verify income, expenses, assets, debts, payroll, and owner activity.

Commonly requested records include:

  • Complete bank and credit card statements
  • Loan statements and financing agreements
  • Payment processor statements from systems such as Stripe, Square, PayPal, or similar providers
  • Payroll reports and payroll tax filings
  • Sales tax and other state tax filings
  • Vehicle and equipment purchase documents
  • Documents for assets that were sold, traded, or disposed of
  • Details of owner contributions, distributions, and personal expenses paid by the business
  • Health insurance and retirement plan information
  • Vendor Forms W-9 and contractor payment information
  • Business mileage records
  • Prior year federal and state tax returns
  • Formation documents and S corporation election records
  • Correspondence or notices from the IRS or state agencies

The IRS requires businesses to maintain records that support the income, deductions, and credits reported on their tax returns. Receipts, canceled checks, invoices, statements, payroll records, and other supporting documents should be retained for the applicable recordkeeping period.