What Every Business Owner Should Share with Their Accountant
Running a business involves more than selling products or services, it requires accurate financial management and legal compliance. To ensure everything runs smoothly, business owners should maintain clear communication and documentation with their accountant. Here’s what you need to share and keep in order:
1. Business Formation and Legal Documents
Before starting operations, ensure your accountant has:
Articles of incorporation / organization (LLC, S Corp, etc.)
EIN (Employer Identification Number)
State and local business licenses
Operating agreements or partnership contracts
Sales tax permits, if applicable
These documents define your business structure and determine how taxes are reported and what regulations apply.
2. Accounting System Setup
Consistent bookkeeping prevents surprises at tax time and ensures informed decision-making. Your accountant can help set up or review your accounting software (QuickBooks, Xero, Wave, etc.) to:
Categorize income and expenses correctly
Track accounts receivable/payable
Reconcile bank and credit card statements monthly
Maintain accurate balance sheets and profit & loss reports
3. Payroll Management
Payroll is one of the most sensitive areas of business accounting. Provide your accountant with:
Employee and contractor information (W-4, W-9 forms)
Payroll schedules and payment methods
Overtime, bonuses, and benefits data
Records of hours worked or salaries paid
Your accountant will ensure payroll taxes, Social Security, and Medicare are correctly calculated and reported on time to avoid penalties. Remember that at ESG Accounting / Macouzet & Gibbons we can help you with all this!
4. Taxes and Filings
Deadlines vary by state and entity type. Organized documentation ensures you never miss an IRS or state deadline. Keep your accountant updated with:
All business income and expenses
Estimated tax payments
1099s, W-2s, and sales tax filings
Any changes in ownership, address, or operations
5. Licenses, Permits, and Renewals
Many businesses need to renew permits annually (city, county, professional, or health department). Provide your accountant with copies and renewal dates so they can track compliance and expenses related to those fees.
6. Financial Planning and Forecasting
A good accountant does more than file taxes, they help you plan. To allow your accountant to help you budget, forecast cash flow, and optimize deductions, you could share:
Business goals and expansion plans
New hires or investments
Loan or funding applications
7. Communication is Key
Regular check-ins (monthly or quarterly) help identify issues early and keep your business compliant and financially healthy.
IMPORTAN things to remember:
A good accountant is a strategic partner, not just someone who files your taxes once a year.
Keeping things on track helps you plan ahead and avoid last-minute stress. It’s always easier to handle tasks on time than to scramble right before a deadline.
In order to avoid penalties, additional fees or any problem related to your finances, you need to have a clear communication with your accountant about everything that you need.
WE CAN HELP YOU TO ORGANIZE YOUR ACCOUNTING!