Whether it’s tax season or time for your annual financial review, meeting with your accountant is a key step toward maintaining your business’s financial health. However, to make that meeting productive and efficient, preparation is essential. Having your finances organized before sitting down with your accountant can save you time, reduce stress, and ensure you get the best possible advice.
Here’s how to get everything in order before your next meeting.
1. Gather All Relevant Financial Documents
Start by collecting all the paperwork your accountant will need. This includes:
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Bank and credit card statements
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Invoices and receipts for income and expenses
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Payroll records
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Loan or lease agreements
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Investment and retirement account statements
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Last year’s tax return
Having these documents ready — either digitally or in printed form — allows your accountant to review your financial picture quickly and accurately. If you use accounting software, make sure it’s updated and that all transactions have been reconciled with your bank accounts.
2. Categorize Income and Expenses
Before meeting with your accountant, review your transactions and ensure everything is categorized properly. Misclassified expenses can lead to inaccurate financial reports or missed deductions. Common expense categories include office supplies, travel, advertising, professional fees, and utilities.
If you’re unsure how to categorize certain items, flag them for discussion. Your accountant can clarify what’s deductible and help you refine your bookkeeping process for next time.
3. Reconcile Your Accounts
Account reconciliation is one of the most important steps in preparing your finances. Compare your records to your bank and credit card statements to confirm that all balances match. Any discrepancies should be identified and corrected before your meeting.
Accurate reconciliations not only make your accountant’s job easier but also help you catch potential issues like duplicate entries, missed payments, or fraudulent transactions.
4. Review Outstanding Invoices and Debts
Make a list of all accounts receivable (money owed to you) and accounts payable (bills you owe). Knowing what’s outstanding helps your accountant assess your cash flow and plan for upcoming expenses.
If you have overdue invoices or unpaid debts, provide details on any collection efforts or payment plans. This information is important for tax reporting and financial forecasting.
5. Prepare Questions in Advance
Your accountant isn’t just there to file paperwork — they’re a valuable advisor. Take time to write down any questions you have about your finances, such as:
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How can I lower my tax liability?
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Should I change my business structure?
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Am I taking full advantage of available deductions?
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What’s the best way to plan for future growth?
Bringing a list of questions ensures you leave your meeting with actionable insights.
6. Stay Organized Year-Round
The best way to make future meetings easier is to stay organized all year. Keep digital copies of receipts, record transactions weekly, and use accounting software to track your financial performance. A consistent routine will make tax season much less stressful.
Final Thoughts
Being well-prepared before meeting your accountant shows professionalism and helps you get the most value from their expertise. By organizing your records, reconciling accounts, and coming with clear questions, you’ll gain deeper insight into your business’s financial health — and be better equipped to make smart financial decisions moving forward.
The Dolins Group provides accounting and consulting to closely-held businesses, individuals and families. Contact us today for a free consultation.