The short answer
Most CPAs want books closed and reconciled through December 31, plus the records behind them: a profit and loss statement, balance sheet, general ledger, year-end statements, asset purchases, loan statements, payroll and contractor totals, and owner draws and contributions. For calendar-year 2026, partnership and S corporation returns are generally due March 15, 2027 and individual returns April 15, 2027, so plan the handoff well before then.
January is when the year's records get tested
Every January your CPA sends a list, and every year something on it is hard to find. A loan statement is missing. A laptop purchase is buried in office supplies. The owner draws are mixed in with expenses. None of this is unusual, but each gap costs time, and time is short in tax season.
The handoff is simpler when you split the work in two. A bookkeeper keeps the books, closes the year and assembles the records. Your CPA or enrolled agent prepares the return and makes the tax calls, such as depreciation elections, how to treat a vehicle, and which accounting method the return uses. The cleaner the books are when they arrive, the more of the CPA's time goes to those calls instead of to cleanup.
The 2027 dates to work back from
These are the federal dates for a calendar-year business filing 2026 returns. When a due date falls on a Saturday, Sunday or legal holiday, IRS Publication 509 moves it to the next business day, which is why several January items land on February 1.
Two more dates shape the package itself. The fourth 2026 estimated tax payment for individuals is due Friday, January 15, 2027, according to the 2026 Form 1040-ES, so list every estimated payment you made during the year with its date and amount. Then work back from the date your CPA wants the package, not from the filing deadline. If they want it in early February, the December close has to finish in January.
- Monday, February 1, 2027: Forms W-2 to employees and Copy A with Form W-3 to the Social Security Administration, Form 940, the fourth-quarter Form 941, and Form 1099-NEC to contractors and the IRS. January 31, 2027 is a Sunday.
- Monday, March 15, 2027: Form 1065 for partnerships and Form 1120-S for S corporations, with Schedules K-1 to owners. Both are due on the 15th day of the 3rd month after the tax year ends.
- Thursday, April 15, 2027: Form 1040, including Schedule C for sole proprietors and, generally, single-member LLCs owned by one person, and Form 1120 for calendar-year C corporations.
- Extensions: Form 7004 (business returns) and Form 4868 (individuals) give more time to file, generally six months. Neither extends the time to pay any tax due.
The year-end package, item by item
CPAs differ in what they want and in what format, so treat the table below as a starting list and confirm it with yours each fall. IRS Publication 583 notes that your records must support the income, expenses and credits on the return, and that the same records are the ones behind your financial statements. That is why the package leads with the books and ends with the documents that prove them. If the books are months behind in December, say so early: a catch-up has to come before the handoff, and starting it in March puts the filing date at risk.
Two items deserve their own guides. Contractor payments and the 2026 Form 1099 threshold are covered in paying contractors: the records to have before January. Vehicle records are covered in vehicle and mileage records. If you bought equipment this year, expense or capitalize purchases explains what an asset list should hold.
| Item | What to include | Why your CPA asks |
|---|---|---|
| Reconciled accounts | Reconciliation reports and December statements for every bank, card, loan and processor account | Proves the year-end balances are complete before any return is built on them |
| Year-end reports | Profit and loss, balance sheet and general ledger for the full year | The starting point for the return and for any adjusting entries |
| Asset purchases | What you bought, when you bought it, what it cost, and the invoice | Needed to figure depreciation and any later gain or loss on sale |
| Loans | Lender year-end statements showing interest paid and the remaining balance | Interest and principal are recorded differently, and the lender total must match the books |
| Payroll | Annual payroll summary, Forms W-2 and W-3, Form 940 and all four Forms 941 | Wages on the books should agree with what was reported |
| Contractors | Vendor totals by payment method and copies of Forms 1099 issued | Card and app payments are reported by the processor, not by you |
| Owner money | Draws, distributions and contributions, kept separate from expenses | Draws are not business expenses, so they must stay out of the profit and loss |
Close the books before you send anything
A handoff is only as good as the close behind it. Before any report leaves your hands, the December close should be finished the same way every other month is, with a little more care. The steps of a normal month are in the monthly close, small-business sized. At year end, add these:
- Reconcile every bank, credit card, loan and payment processor account through December 31, and keep the December statements with the reconciliations.
- Clear any uncategorized or "ask my accountant" balances, or list each one with a question your CPA can answer.
- Compare loan balances with the lenders' year-end statements, and split each payment between interest and principal.
- Tie the payroll accounts to the annual payroll reports and to the four quarterly Forms 941.
- Record owner draws and contributions in equity accounts, never as income or expense.
- Lock the period once it balances, so nobody changes 2026 after the CPA has started.
After the return: bring the books into line
When your CPA finishes, the return often includes adjustments that never reached the books: depreciation, reclassified expenses, or corrections to equity. Ask for those adjusting entries in writing and record them as of December 31. Then the books open 2027 on the same numbers the return used, and next year's handoff starts clean.
Settle the logistics in the fall, before anyone is rushed. Ask your CPA what date they want the package, whether they work from reports or from access to your accounting file, which basis (cash or accrual) they file on, and who files the payroll forms and 1099s. If they will log in to your books, give them their own named access, as covered in give your bookkeeper access safely.
Who does what at year end
Danielson Bookkeeping's small business bookkeeping includes clear handoffs to your CPA at year end: reconciled accounts, year-end reports and organized records your CPA can work from. Tax preparation and tax planning stay with your CPA or enrolled agent. Carey Danielson is a bookkeeper, not a CPA, enrolled agent or attorney. How we work sets out where bookkeeping ends and other professionals take over.
Whoever keeps your books, the monthly reports you receive during the year are the raw material for this package. If you are not sure what those should look like, see what your bookkeeper should send monthly.
