QuickBooks HelpQuickBooksHelpIntuit

Prepare your books for tax filing

by Intuit•77• Updated 3 weeks ago

You can prepare your books for tax filing in QuickBooks Online by using QuickBooks Live Expert Full Service Bookkeeping to ensure your records are complete and accurate.

Get help from our QuickBooks Live experts to make sure your books are complete and ready for tax time. If you choose to file with QuickBooks Live Tax, you'll receive a year-end management report, which includes notes for your tax preparer.

How can I file taxes with QuickBooks Online?

QuickBooks Online provides several tools to help you manage different tax obligations efficiently.

  • QuickBooks Live Tax:
    Use QuickBooks Live Tax to file your business income tax return (year-end). Share your year-end information with a tax preparer and start your filing workflow. To learn more, check out QuickBooks Live in QuickBooks Online.
  • File your sales tax return:
    Use QuickBooks to review your sales tax due, then file with your tax agency and record the payment in QuickBooks.
  • Prepare year-end forms (W-2, 1099, and more): 
    If you need year-end employee or contractor forms, see Year-end reporting in this article (to avoid missing required documents).

Elements of complete and accurate books

Maintaining accurate records is essential for a smooth tax season and to avoid complications during an audit.

The income record on your books should have all the revenue made over the tax year. Our QuickBooks Live experts review and reconcile your income transactions in your bank accounts and accounts receivable invoices.

Document receipts and invoices, for rent, utilities, and advertising costs. Make sure to categorize expenses to avoid missed deductions or complications during an audit. Our QuickBooks Live experts will review these to make sure they reflect in your books.

Our QuickBooks Live experts can help you prepare an accurate balance sheet for your tax preparation. Get essential info like current cash balances, loan and accounts payable balances, and asset depreciation.

Your books should include detailed payroll records that reflect gross wages, taxes withheld, and benefits like retirement account contributions or fringe benefits. It’s essential to make sure your payroll records are complete and accurate to avoid penalties.

If your business hires outside labor or independent contractors, it’s important to document their info and keep records of payments made to them throughout the year for services provided. This is essential for tax purposes.

Depreciation or amortization expenses include long-term assets like equipment, real-estate, or goodwill. Our QuickBooks Live experts classify these assets to make it easier for your tax preparer to track and maximize your deductions over their useful lives.

Clear and up-to-date records of what your customers owe (accounts receivable) and what you owe your vendors (accounts payable) help you see your cash flow better. Our QuickBooks Live experts review these.

Maintain your cash flow better by keeping your account balances up to date. It’s important to classify your transactions and reconcile your books to the most recent time period.

Required documents for year-end tax preparation

Transfer your year-end report to a tax preparer with Quickbooks Live Tax. They’ll need info from you like your tax return for the previous year or depreciation schedules. Here’s more of what you’ll need.

  • Employee forms:
    • W-4: Employee tax withholding certificate
    • W-2: Wage and tax statements for each employee
  • Subcontractors and professional services:
    • W-9: Request for taxpayer identification number and certification
    • 1099: Nonemployee information form, including forms 1099-NEC and 1099-MISC

Getting Started

  • Copy of articles of incorporation or bylaws including any amendments.
  • Copy of IRS EIN assignment on form CP575.
  • Copy of IRS acceptance letter of S election or previously filed Form 2553.
  • Last year’s federal, state, and local tax returns (not applicable for new businesses in 2024).
  • List of states and state ID numbers in which your business has a nexus or a presence that requires reporting.
  • All amounts and dates for state and local estimated tax payments made.
  • Prior-year depreciation schedules detailing asset cost, date placed in service, prior depreciation, and business use percentage.
  • Date of purchase, cost, trade-in allowance, and business use percentage for all assets acquired during the tax year.
  • Date of disposal, cost, sales proceeds, trade-in allowance, expenses of the sale, and accumulated depreciation for all assets disposed of during the tax year.
  • Year-end bank, credit card, and loan statements
  • Third-party app year-end sales reports (Square, Shopify, etc.)
  • Annual payroll detail journal
  • Copy or summary of all Form 1099 and W-2s issued
  • Subcontractors and professional services income:
    • Total of 1099s received
  • Square footage of office space
  • Mortgage interest or rent paid
  • Utilities
  • Insurance policy
  • Vehicle mileage
    • Business miles
    • Total miles

Use our Intuit Experts

Partner with experts backed by Intuit's AI automation to help your business grow and get accurate info you can count on. Our experts can onboard and train you, give you financial coaching, clean up your books for tax time, or handle your bookkeeping.

1. Live Priority

Get personalized QuickBooks training and premium support from our product experts. Connect with experts during extended hours with priority access. They'll get you started and help set up key features, including AI. 

Learn more about QuickBooks Live priority virtual bookkeeping services.

2. Live Expert Assisted

Get personalized business and financial coaching from QuickBooks-certified bookkeepers. Experts can guide you on your books, taxes, and cash flow. 

You’ll get the extended hours and access included with Priority and:

  • Review of automation, categorization, reconciliation, and AI Agent work.
  • Proactive insights for more informed business decisions.
  • Business, 1099, payroll, and sales tax support.

Learn more about Bookkeeping help for small business. 

3. Full-service bookkeeping

Focus on your business with accurate bookkeeping—guaranteed. A dedicated bookkeeper manages your books, sends reports, and shares insights to help you make smarter financial decisions. 

You’ll get everything included with Priority and Assisted plus:

  • Tax resource support.
  • Personalized set up with your dedicated bookkeeper.
  • Detailed business reports, including Profit & Loss and Balance Sheet. 

Learn more about live full-service bookkeeping.

One-time book cleanup

If you need a one-time clean-up of your books to give you peace of mind, our experts can help.

Learn more about cleaning up your books with QuickBooks Live.

QuickBooks Live Assisted BookkeepingQuickBooks Live Full Service Bookkeeping CleanupQuickBooks Live Full Service Bookkeeping MonthlyQuickBooks Live Full Service TaxQuickBooks Live One Time Setup