I’m Bobbie with Bookkeeping Confidential, here with you today. We are a full-service virtual bookkeeping firm and are here to help you bring profit to your business and eliminate the time and burden of bookkeeping from you. I’ve been asked a few times just this week, information on what reports your CPA may as for from you as a small business. So, I thought I would create a video and show the report to point out some areas that you might want to make sure are taken care of.

What We Will Need

This one is the Profit and Loss. You’re going to want to open your Profit and Loss, Balance Sheet, General Ledger, W3, W2, and the Bank Reconciliation. These are the most common.

Follow along with video below

Profit and Loss

So, let’s start with Profit and Loss. I’ll select January through to December 2019. Here, you can see we have Income, Labor, Unapplied Cash Payment Income (If you have Unapplied Cash Payment Income on your Profit and Loss Statement, you want to make sure that it’s at $0.00. If it is not, it means you have cash not being applied to an invoice and you would need to check that out), Gross Profit. Expenses and then the net income. Your CPA may ask for all this in a report for the entire year.

Balance Sheet

Go over to the balance sheet. Again, select January-December 2019. One thing to look out for is your Undeposited Funds. This should be $0.00. In this sample sheet it does not. So, obviously, there’s an issue. If you’re an attorney and you have your Trust Funds accountability mixed in with your corporate books, you must make sure that your Trust Account Bank Balance matches (to the penny) your trust account liability. For example, if this company had their trust fund, where it says bank account it would say Trust Bank Account = $30, 000.00, under Current Assets and also Current Liability. Example, Trust Account Liability $30. 000.00 is listed as a Current Liability. So, those two should balance. That’s important. Another thing is, if you have any fixed assets that you purchased during the year, your CPA is going to want the details on those. So, this is your Balance Sheet.

General Ledger

Some CPAs may ask for the General Ledger and some don’t. Again, it is a good practice to select the entire year so that they can see each and every transaction to eliminate the phone calls between the two of you. We talked about the undeposited funds. In this sample file, these are the two issues that you’ll need to go and research. You’ll see the fixed assets below that and you can see the day that it was purchased. So, your CPA can go through and see all of your activities.

W3 – Transmittal of Wage and Tax Statements

Another thing you’re going to want to see if you’re running payroll is the W3 2020 that you would have already submitted by January 31st.

W2- Wage and Tax Statement

Your CPA will also want a W2 2020 report for the employee if they’re running payroll as well.

Bank Reconciliation

In preparing your end of year reports, your CPAs may also ask for bank reconciliation for year ending as of 12/31/2019 (for example) so they can know that your bank is balanced.

These are the common reports that your CPA may ask for. They may ask for other things but you’ll be prepared for that. However, if you should not be prepared and you need help with any of these things or you need help with cleaning up your books, just call out to our website’s contact page. I hope this was very helpful to you.