Income

  • Gross receipts from sales or services
  • Sales records (for accrual based taxpayers)
  • Returns and allowances
  • Business checking/savings account interest (1099-INT or statement)
  • Other income

Cost of Goods Sold (if applicable)

  • Inventory
  • Beginning inventory total dollar amount
  • Inventory purchases
  • Ending inventory total dollar amount
  • Items removed for personal purposes
  • Materials & Supplies

Expenses

  • Advertising
  • Phones (landline, fax or cell phones related to business)
  • Computer & internet expenses
  • Transportation and travel expenses 
    • Local transportation
      • Business trip (mileage) log
      • Contemporaneous log or receipts for public transportation, parking, and tolls
    • Travel away from home
      • Airfare or mileage/actual expense if drove
      • Hotel
      • Meals, tips
      • Taxi, tips
      • Internet connection (hotel, Internet café etc.)
      • Other
  • Commissions paid to subcontractors 
    • File Form 1099-MISC and 1096 as necessary
  • Depreciation 
    • Cost and first date of business use of assets
    • Records relating to personal use of assets
    • Sales price and disposition date of any assets sold
  • Business insurance 
    • Casualty loss insurance
    • Errors and omissions
    • Other
  • Interest expense 
    • Mortgage interest on building owned by business
    • Business loan interest
    • Investment expense and interest
  • Professional fees 
    • Lawyers, accountants, and consultants
  • Office supplies 
    • Pens, paper, staples, and other consumables
  • Rent expense 
    • Office space rent
    • Business-use vehicle lease expense
    • Other
  • Office-in-home 
    • Square footage of office space
    • Total square footage of home
    • Hours of use, if operating an in home daycare
    • Mortgage interest or rent paid
    • Homeowner’s or renters’ insurance
    • Utilities
    • Cost of home, separate improvements and first date of business use
  • Wages paid to employees 
    • Form W-2 and W-3
    • Federal and state payroll returns (Form 940, Form 941, etc.)
      • Employee benefit expenses [This needs to be left-aligned with “Wages paid to employees”]
      • Contractors
      • Form 1099-MISc
      • Form 1096
  • Other expenses 
    • Repairs, maintenance of office facility, etc
    • Estimated tax payments made
    • Other business related expenses
      • Health insurance [This needs to be left-aligned with “Other expenses”]
      • Premiums paid to cover the sole-proprietor and family
      • Premiums paid on behalf of partners and S corporation shareholders
      • Information on spouse’s employer provided insurance