The IRS collected more than USD 4.9 trillion in taxes in the last 12 months. But the important question to ask is: are you adhering to such compliance demands month after month? If you run a business (even a small business), compliance is not optional. From taxes and payroll to vendor payments, there are a bunch of financial responsibilities awaiting your attention month after month. But you do not need to do it all by yourself. That is where hiring an accountant could be handy.
If you have previously hired an accountant or you are using a remote accountant currently, you know that your work does not stop there. You must provide them the correct financial data (accurate, organized and timely) to do the task correctly.
Monthly Checklist for Your Accountant to Keep You Compliant
This is your monthly checklist that provides your accountant everything they need to keep your company compliant, avoid penalties, and expand confidently.
1. Bank Statements and Credit Card Statements
Your accountant can not reconcile your accounts if they don't know how much money came in or went out. Send out check & credit card statements for the month. This helps your accountant match the books to real financial activity.
Tip: Link your business accounts with software like QuickBooks Online or Xero if you have a remote accountant.
2. Receipts & Expense Records
Just because you swiped your card to pay for something does not imply that it’s automatically recorded. You must keep track of:
- Office supplies.
- Travel expenses.
- Customer lunches.
- Software subscriptions.
- Apps like Dext can scan and group receipts so you send clean, organized information each month.
Note: Missing or miscategorized expenses can raise your taxable income.
3. Invoices Issued and Payments Received
If you issue invoices by hand or via billing software, always give your accountant:
- A list of generated invoices.
- Status (paid, unpaid, overdue).
- Payment receipts.
This helps them with receivables, cash flow and follow up on late payments and that's essential if you are running a start up with tight cash flow.
4. Vendor Bills & Payment Records
The other half of your cash flow is payable via vendor bills & payment records. Tell your accountant:
- Which vendor invoices you have received.
- Due dates.
- Confirmations of payments.
- Using services like Bill.com can do this for you and give your accountant live access.
Note: Late payments can strain vendor relationships and impact budgeting.
5. Payroll Records
Payroll is not restricted to paying your team; it is about compliance as well. Provide:
- Timesheets of workers.
- Pay stubs.
- Payroll tax payments.
- Any changes in personnel (hires, terminations, raises)
This enables your accountant to reconcile payroll and file taxes.
Tip: Use Gusto or Wagepoint for payroll that integrates with accounting software.
6. Inventory
If you sell products, your inventory changes monthly. For inventory management, you will have to bring:
- Stock counts updated.
- Purchases of inventory.
- Items sold/returned.
This data helps your accountant track COGS and also calculate profits properly.
Note: Misreporting inventory can cause mistakes on financial statements and taxes.
7. Loan & Lease Statements
Send these monthly statements if your business has outstanding loans or leases. They include:
- Outstanding balances.
- Monthly payments made.
- Interest details.
This helps reconcile liabilities and maintain correct long-term debt records.
8. Tax payments & Notices
If you pay taxes monthly and quarterly (sales tax, estimated tax) share:
- The proof of payment.
- Due dates.
- Any correspondence from IRS or state tax departments.
Your accountant can check these against the books and flag any problems early.
9. Software Subscription Fees
These are usually unnoticed but add up fast. Track tools like:
- CRM software.
- Marketing platforms.
- Tools for accounting.
- Project management apps.
Giving these to your accountant helps classify expenses and weed out unnecessary recurring costs.
10. Budget Updates or Modifications
If you have altered your forecast or spending plans, tell your accountant. Budget vs actual comparisons are essential for decision making and course corrections.
An excellent accountant (particularly in case you employ an accountant with forecasting experience) will let you know early if things are off track.
11. Business Mileage or Travel Logs
If you drive for work or travel frequently:
- Track mileage.
- Document travel dates & purposes.
- Include lodging & meals.
This is a common deduction area that your accountant could optimize if you submit the data monthly.
12. Financial Concerns or Goals
Your accountant is more of your financial guide. If you set goals like:
- Expanding your team.
- New equipment purchasing.
- Saving for taxes.
Share these updates often. In case you're hiring an accountant for the first time, inquire about their financial advisory experience too.
13. Compliance Deadlines & Licenses
You might have gotten reminders regarding :
- Business license renewals.
- Compliance filings.
- Industry-specific reports (e.g., healthcare or finance):
Forward these to your accountant. They'll help you avoid missing a regulatory requirement.
Tip: Tracking compliance-related papers and deadlines can be done with Canopy or TaxDome.
14. End-of-Month Adjustments
Every month brings small but essential changes. Be sure to report:
- Manual journal entries (depreciation, etc.):
- Accruals/prepayments.
- Unusual transactions.
These are necessary for a month-end close that keeps your books current.
15. Backup of Financial Data
If you manage any data yourself (like spreadsheets or POS records) back them up and share copies securely. Cloud storage like Google Drive or Dropbox is good for this job.
Note: A missed file might result in your accountant to postpone their filings or lose information when filing taxes.
Summary of Monthly Checklist for Accountant
This is what to send to your accountant each month. Here is a quick checklist:
- Bank & credit card statements.
- Receipts & categorised expenses.
- Sales invoices & payment information.
- Vendor bills/confirmations.
- Data from payroll.
- Inventory changes (if applicable).
- Mortgage or lease papers.
- Tax payments & IRS notices.
- Subscription & software expenses incurred.
- Budget changes.
- Mileages & travel logs.
- Business goals or big decisions.
- Documents associated with compliance.
- Month-end journal entries.
- Financial data backed-up.
Also Read: Dedicated Offshore Accountants for CPAs: Extending Your Team Seamlessly
Final Thoughts
Staying compliant is a question of fact. This is possible if you regularly share the correct information with your accountant and that too, at the right moment. This checklist will be your monthly accountability partner, so keep it close by and you will not be surprised during audits or tax season 2025.
In case you still manage all your books by yourself or your current support is not cutting it, you might want to consider professional accounting services. Whether you use a local CPA or a remote accountant, the key is staying organized, communicating often, and sharing every aspect on this checklist each month.
If your books are in order, your business can go further, quicker and without stress.
