What Your Accountant Requires to File Your Tax Returns

Most people will have anxiety and stress if they discovered they filed their taxes incorrectly. The greatest fear of these individuals is being audited by the CRA or IRS. The audit will likely bring to light other erroneous filings.

That will force the authorities to impose either a file or pursue prosecution. As a responsible citizen, you can evade such issues by hiring an accountant and providing what they need for accurate filing. Here are some of the things needed by accountants to file your tax returns.

Yearly Financial Business Reports

A financial statement always reveals the monetary-wellbeing of a company. It comprises a cash flow statement, balance sheet, and income statement. The Accountants in Windsor Ontario will also need copies of your detailed financial report for the year. These include:

●       Profit and loss report: It reveals the amount of loss or profit your business incurred within the year, including a detailed report of the incoming revenue and expenses.

●       The balance sheet: It provides a detailed calculation of your assets and liabilities with an accurate computation of your company’s net worth. It will also show the owner’s equity at a specific time frame.

●       Statement of cash flows: This report shows details of transactions for money coming into your business.

●       Supporting documents: This includes any report that complements your financial records in any way.

Print these fundamental financial reports using any accounting software. You can also confirm with your tax preparer if they need any extra reports.

Financial Records

Prior to recording your returns, you must have all financial records like financial statements and supporting documents like receipts. Although your financial statements provide an outline of vital data, the US Canadian Tax Accountants will need details to guarantee accuracy and to check for any opportunity for deductions. To your financial records, you can add:

●       Loan data – If you have a loan application for the previous year, keep the agreement and give the accountant the interest and installment record.

●       Asset Data – Provide receipts for assets, similar to equipment, goods, or property you have traded within the year.

●       Expense and Income Data – The accountant must check the income amount, bank statements, sales invoices, and receipts for installments.

●       Estimated Tax Records – If you paid quarterly taxes, present the records to the accountant.

●       Deductible Data – Mortgage interest, health protection, beneficiary giving, IRA contributions, home office, and travel can be deducted from your company’s charges. To reduce your tax payments provide these details to your accountant.

Personal and Identification Information

To file your taxes, the Accounting Firms Windsor Ontario will need the information to check your identity. The accountants will ask for your social security number, including that of your dependents. The IRS always sends back tax returns of names that don’t match their social security numbers. To avoid such a case, carry your second type of identification proof like a military ID, driver’s permit, or state-issued picture ID card.