The Records Your CPA Asks For at Tax Time: A Checklist for Home Office, Vehicle, Phone and Family Payroll

What your CPA asks for at tax time

When tax season comes, your CPA needs two things from you. Clean books that tell the true story of the year. And the records behind the numbers, so each line can stand up to a question.

The books come first. Your profit and loss report shows what you earned and what you spent. Your balance sheet shows what you own, what you owe, and what you put in or took out. Your cash summary shows where the money came in and where it went out. When those three reports match the bank, your CPA starts from numbers they can trust.

The records come next. Your CPA asks for the proof behind the lines that matter most. Home office costs. Vehicle costs. Phone and equipment you paid for personally. Family payroll. Each one has a set of records that backs it up. When the records are missing, your CPA spends more time and asks more questions. When the records are clean, the work moves fast.

Here is what your CPA asks for, in plain terms.

We keep all four tied to the books all year. When the year ends, the records are already in place. You can read more about how we close the month on our bookkeeping page.

Home office records

A home office is a real cost, and your CPA wants to see it the right way. The bills go in the books. The share your CPA figures goes on top of that. We do not pick the share. Your CPA does that.

What your CPA asks for is the full bill for each shared cost, plus a note on how the office share was figured. Power, water, internet and the rent or mortgage interest that covers the office space. Each one goes in its own line in the books. The full bill stays on file. The note says the share is your CPA's call.

Here is the home office checklist.

• **Rent or mortgage interest.** The housing cost tied to the office space, in its own line.
• - **Utilities.** The full power, water and internet bills, with a note on the office share.
• - **Repairs.** What was fixed, when and the amount.
• - **Office supplies.** Paper, ink and small tools, each receipt tied to the transaction.
• - **Equipment.** Desk, chair, computer or monitor, with the receipt on file.
• - **A note on the share.** How the office share was figured, and that your CPA decides it.

When each bill is in its own line and each receipt is tied to the books, your CPA can read the home office costs and figure the share. We keep the proof in place all year, so the year end handoff is already sorted.

You can read more about how we set up home office lines on our home office records post.

Vehicle records

Your CPA asks for one of two things for a business vehicle. A mileage log, or the actual costs of running the vehicle. You pick the method with your CPA. We keep the records for whichever one you use.

If you keep a mileage log, your CPA wants to see the miles, the dates and the reason for each trip. The log should match the books. When a trip was for business, the costs tied to that trip go in the books. When the log matches the books, the miles and the costs tell the same story.

If you track actual costs, your CPA wants to see fuel, repairs, insurance, registration and any loan interest for the vehicle. Each one goes in its own line. When the vehicle is used for personal trips too, your CPA figures the business share. We keep the full costs in the books and a note that the share is your CPA's call.

Here is the vehicle checklist.

• **A mileage log, or actual cost records.** Pick one method with your CPA and stick with it.
• - **Fuel.** Each fill, tied to the date.
• - **Repairs and maintenance.** What was fixed, when and the amount.
• - **Insurance.** The policy that covers the vehicle.
• - **Registration and tags.** The yearly cost of keeping the vehicle legal.
• - **Loan interest, if you finance.** The interest part of each payment.
• - **A note on personal use.** When the vehicle is used for both business and personal trips.

When the records match the books, your CPA can read the vehicle costs and make the calls. We keep the costs in the right lines and the records on file all year. You can read more about mileage logs on our mileage log post.

Phone and equipment records

When you buy a phone, a laptop or a tool with your own money and use it for the business, your CPA wants to see the receipt and a note on how much was for business. The cost goes in the books as a business expense. The payback is a reimbursement. The note says the use was mixed if it was.

The receipt is the big one. Without it, the cost is hard to prove. A photo the day you buy it is the easiest way. We tie the receipt to the transaction in the books, so the proof stays with the cost.

Here is the phone and equipment checklist.

• **The receipt.** The proof that you bought it and what you paid.
• - **The date.** The day you bought it, so the cost goes in the right month.
• - **The line it goes in.** Equipment, supplies or tools.
• - **A note on business use.** When the item is used for both business and personal.
• - **The reimbursement.** The date the business paid you back and how it moved.

When a cost is part business and part personal, the cost goes in the books and we add a note that the use is mixed. Your CPA decides the split. We keep the cost in the right line and the note on it, so the books stay clean either way. You can read more about reimbursing yourself on our owner paid costs post.

Family payroll records

When a family member is on the payroll, your CPA asks for the same records they ask for any team member. A time record for the hours worked. The pay rate. A note on the work. And a pay record for each run.

The time record is the big one. A wage with no time record is hard to back up. Your family member writes down their hours, or you keep a sheet, and we tie it to the pay run. The pay record shows what they earned and what came out. The wage goes in the payroll line. What comes out goes where it belongs. When the month closes, the payroll lines match the pay records and the bank.

Here is the family payroll checklist.

• **A time record.** The days and hours worked, kept the same way as anyone else.
• - **The pay rate.** What your family member earns, written down before the work starts.
• - **A note on the work.** What the work was, so the pay matches a real job.
• - **A pay record for each run.** The document that shows what they earned and what came out.
• - **The wage in the right line.** Payroll costs in the books, tied to each run.

We keep the time, the pay and the books tied together every month. Your CPA can read the payroll lines and see a real wage with real records behind it. You can read more about family payroll on our putting your child on payroll post.

What we do and what your CPA does

We keep books and run payroll. We do not prepare taxes. We do not give tax advice. We do not tell you what share of your home to claim, which vehicle method to pick, what counts as business use for your phone, or whether your family member can be on the payroll. Those are calls for your CPA or a lawyer.

What we do is keep the records clean so your CPA has good numbers to start from. The bills are in the right lines. The receipts are tied to the transactions. The mileage log matches the books. The pay records back up the wages. Your CPA can read the books and make the calls.

When the tax questions come up, we point you to your CPA. We answer their questions about the books, but we do not give the advice. You can read more about how we keep the books on our bookkeeping page, and about payroll on our payroll page.

A situation we clean up

The year end pile with no records behind it

A small business owner hands the books to a CPA at year end. The books show costs in every line. Home office, vehicle, phone and payroll all have totals. But behind the totals, there are no records. No bills tied to the home office costs. No mileage log for the vehicle. No receipts for the phone and equipment. No time records for the family wages. The CPA asks for the proof, and the owner has to go find it. Some is lost. Some was never kept. The tax return takes longer and costs more.

Here is how we handle it. We pull the bank and card statements for each open month. We find each cost and record it in the right line, tied to the date it happened. We set up a mileage log and fill in the miles we can prove from the records. We pull the receipts and tie each one to its transaction. We start time sheets for the family wages and tie each pay record to the books. We close each open month one at a time, from the oldest forward. Then the routine runs every month, so the next year end starts with clean books and the records already on file.

Common questions

What records does my CPA ask for at tax time? Clean books and the proof behind them. Home office bills, vehicle miles or actual costs, phone and equipment receipts, and family payroll time and pay records. We keep each one tied to the books all year, so the handoff is already sorted.

Do you pick the home office share or the vehicle method? No. Those are calls for your CPA. We keep the bills and the costs in the books, and the records on file. Your CPA reads the books and makes the calls.

What if I bought my phone or laptop with my own money? Keep the receipt. We record the cost as a business expense and pay you back as a reimbursement. If the use is part personal, we add a note. Your CPA decides the split.

Do you prepare taxes? No. We do not prepare taxes. We keep the books and the records your CPA starts from. You can reach us on our contact page if you want a team that keeps your records clean all year.