Working with an accountant or bookkeeper year-round makes the fiscal year-end less stressful for the entrepreneur. Even if you have undertaken the task of your business’s bookkeeping throughout the year, there will likely come a time when you hand your books over to your accountant. When that time comes, you need to be prepared.

Preparing for the annual visit with your accounting professional may be a confusing event. Some business owners err on the side of caution and bring every piece of paper they have generated throughout the year or they do nothing other than put their paperwork into a box and leave it on the accountant’s doorstep. Neither option is beneficial to the financial health of your business.

You may be wondering, “What exactly does my accountant need/want from me?” Asking your accountant that question can help you better prepare and will help keep you on track throughout the year. A quality accountant will sit down and explain the requirements for monthly, quarterly, and annual paperwork; regardless of whether he prepares them for you or if you take on that task in-house.

If this is your first year of filing a business tax return, here are some of the records you will want to prepare for your accountant:

• Make sure your invoices are filed in order (by month) and each invoice has a description of what it was for, i.e. Office equipment, marketing, professional services, etc.
• Reconcile your business bank accounts and have copies of the year’s worth of statements available
• Have control accounts in place. Control accounts track your sales and purchases and account for the movement of the cash in and out of your business
• Compile a comprehensive list of all creditors and debtors
• Put together a list of all your outstanding invoices and receivables
• Call your accountant and ask her what specific information is required before you make an appointment to discuss your year-end paperwork

Taking the time to have your paperwork in order will not only make your accountant’s job simpler, it allows you to track items throughout the year. Entrepreneurs need to be cognizant of the need for precise record keeping, especially if they find the need to seek financing. Having an accountant on your business team from the day you open your doors may make your business run more smoothly and help assure your success.