Why Your Accountant Needs Your Checking Account Information Before Filing Taxes

When it’s time to file taxes, one of the most important things your accountant needs is your checking account information.

Whether you’re an individual or a business owner, no accountant can file a tax return without your input — including bank statements and your signature. Missing financial data leads to errors, missed deductions, and potential IRS issues.

Below is a quick breakdown of why your checking account information matters and how accounting firms like DSA Tax & Bookkeeping use it to prepare accurate tax returns.

Why Your Accountant Needs Your Checking Account Information

1. To Report Your Income Correctly

Your accountant uses deposits from your checking account to verify actual income. This ensures:

• Accurate tax reporting

• Correct estimation of quarterly taxes

• Lower audit risk

2. To Identify Deductible Business Expenses

Most business expenses show up in your checking account. Accountants use these transactions to maximize deductions and reduce tax liability.

3. To Track Owner Salary, Draws & Distributions

For business owners — especially S-Corps — your bank activity shows:

• Owner wages

• Distributions

• Reimbursements

These numbers directly impact your tax return.

4. To Reconcile Your Books

Accurate financial statements depend on matching your bookkeeping to your bank activity. Without checking account data, your accountant cannot produce reliable books or tax returns.

5. Because You Must Authorize the Return

Your accountant prepares the return, but you must provide the information and sign it. Incomplete info means your return can’t be filed.

How DSA Tax & Bookkeeping Uses This Information

DSA’s accounting services rely heavily on accurate monthly and yearly bank activity to:

• Prepare both business and personal tax returns

• Provide monthly financial statements

• Estimate quarterly tax liabilities

• Keep your business compliant with IRS and state requirements

• Help you track business health and profitability

Their Monthly Reporting System requires clients to submit deposits and expenses — and the checking account is the primary source of this information.

The Bottom Line

Before your accountant can file your tax return, you must provide:

• Checking account statements

• Income and expense details

• Answers to follow-up questions

• Your signed authorization

Your accountant can only work with the information you give them. Providing your checking account details ensures accuracy, maximizes deductions, and keeps you fully IRS-compliant.