Key takeaways
What this article covers, in order:
- What a messy handover costs you
- The year-end handover checklist
- Items 1 and 2: reconciled cash and an empty suspense account
- Items 3 and 4: receivables and payables that are real
- Items 5 and 6: big purchases and disposals
- Item 8: owner money in, owner money out
Your CPA wants three things from your books at year-end: every bank and card account reconciled through Dec 31, 2026, the balance sheet accounts backed up by real documents, and a short list explaining anything unusual. Hand that over and they spend their time advising you instead of cleaning up. This post is the handover checklist only; the filing itself is your CPA's job.
What a messy handover costs you
Andre runs an electrical contracting LLC in Atlanta with four employees. In Jan 2026, he emailed his CPA a login, a shoebox's worth of PDFs, and the note "should all be in there." His CPA's firm spent the first two weeks of the engagement reconciling his accounts, reclassifying a truck that had been expensed as "Repairs," and chasing a $9,000 deposit that turned out to be a customer's refundable retainer.
Andre's bill reflected all of that. So did the timeline.
For the year ending Dec 31, 2026, he's doing it differently. Here's the checklist he's working from, and why each item matters to the person on the other end.
The year-end handover checklist
| # | What to hand over | Why your CPA wants it |
|---|---|---|
| 1 | Every bank, savings and card account reconciled through Dec 31, 2026, with the Dec 2026 statements | Cash is the anchor. If it doesn't tie, nothing else can be trusted |
| 2 | Uncategorized and suspense accounts at $0 | Unexplained balances force guesswork or questions |
| 3 | AR aging as of Dec 31, 2026, with notes on anything you don't expect to collect | Receivables need to be real; uncollectible items need a decision |
| 4 | AP aging as of Dec 31, 2026, with all year's bills entered | Unpaid bills affect expenses and liabilities |
| 5 | List of equipment, vehicle and other asset purchases over your threshold, with invoices | These are usually capitalized, not expensed |
| 6 | Asset sales, trade-ins or disposals during the year | Removing an asset needs its own entries |
| 7 | Every loan and line-of-credit statement showing the Dec 31, 2026 balance and interest for the year | The book balance should match the lender |
| 8 | Owner contributions and owner draws for the year, with personal spending separated out | Equity has to be clean and personal items out of expenses |
| 9 | Year-end inventory count, if you carry inventory | Inventory value drives cost of goods sold |
| 10 | Payroll summary reports from your payroll provider | So payroll in the books matches what the provider processed |
| 11 | Vendor payment totals by vendor, including contractors | Your CPA will know what they need from it |
| 12 | Prepaid expenses, customer deposits and retainers | These sit on the balance sheet, not the P&L |
| 13 | A short "unusual items" note | Context saves hours of questions |
| 14 | Confirmation that last year's CPA adjustments are posted | Opening balances must match last year's final figures |
Now, a closer look at the items that cause the most back-and-forth.
Items 1 and 2: reconciled cash and an empty suspense account
This is the big one. A CPA can work around a lot, but not around cash that doesn't tie to statements.
For each account, you're handing over:
- The Dec 2026 statement
- A reconciliation report showing the book balance equals the statement balance, with any outstanding checks or deposits in transit listed
Don't forget accounts that feel minor: the savings account with three transactions all year, the card only one employee uses, the payment processor balance. Andre almost missed a business savings account he'd opened in Mar 2026 for a tax reserve.
Then clear the "Uncategorized" or "Ask my accountant" bucket. If you genuinely can't identify something, list it with the date, amount and your best guess. That's far more useful than a $3,000 lump.
Items 3 and 4: receivables and payables that are real
Open your AR aging. For each invoice older than 90 days, decide: still collectible, or not? If a customer went out of business in Jun 2026, that invoice probably isn't coming. Your CPA will advise on how to handle it, but they need you to flag it.
On the payables side, make sure every bill dated 2026 is entered, even if you paid it in Jan 2027. Andre found $4,300 in supplier invoices for Dec 2026 jobs still sitting in his email.
Items 5 and 6: big purchases and disposals
The truck Andre bought in 2025 got coded to "Repairs" because the payment came out of checking and his helper picked the closest-looking category. A vehicle or equipment purchase is usually recorded as an asset, and your CPA decides how it's depreciated or expensed.
What to give them:
- The purchase invoice or bill of sale
- Date placed in service
- Whether it was financed (and the loan statement, see item 7)
- Any trade-in or old asset sold
If you sold or scrapped equipment, include the sale amount and date.
Item 8: owner money in, owner money out
For LLCs and sole proprietors, owner contributions and draws should each be in their own equity account, and every personal expense paid with business money should be recorded as a draw rather than a business expense.
A quick self-check: open your expense accounts and scan for things that look personal. Groceries, a family phone plan, a vacation flight. Move them to draws before handover. If you're a corporation, owners are paid differently, so ask your CPA what they want to see.
Item 12: money that isn't yours yet
Customer deposits and retainers are the sneaky one. Andre's $9,000 retainer from Jan 2026 wasn't revenue when it arrived; it was money he owed back as work or a refund. Recording deposits as a liability until the work is done keeps your revenue honest.
The same logic in reverse applies to prepaid expenses. If you paid next year's insurance in Dec 2026, flag it.
Item 13: the "unusual items" note
This is the easiest item on the list and the one that saves the most time. A one-page note in plain English:
- "Received a $15,000 equipment grant from the county in Aug 2026."
- "Sold the old trailer for $2,800 in May 2026."
- "Customer XYZ paid $6,200 twice in Sep 2026; refunded the duplicate in Oct 2026."
- "Started taking card payments through a new processor in Jul 2026."
Your CPA can't ask about something they don't know happened.
How to hand it over
Give access, not just exports. If your accounting software allows it, invite your CPA into the books directly. They can look at the detail behind any number instead of emailing you for it.
Add a cover email. List what's attached, what's still coming (like a late payroll report), and the best way to reach you with questions.
Set an internal deadline. Aim to have your books closed and reconciled for Dec 2026 by mid-to-late Jan 2027. Your CPA will tell you their actual timeline; your job is to not be the bottleneck.
Don't keep editing after handover. Once your CPA starts work, changing old transactions moves the ground under them. If you find something, tell them instead of quietly fixing it.
Do this during the year, not in Jan 2027
Everything above is easier when it's been done monthly. If you reconcile every month, record owner draws correctly as they happen, and enter bills when they arrive, the year-end handover is mostly printing reports and writing the unusual-items note. If you haven't, start with the last few months of the year and work back. Clean books don't make tax time fun, but they do make it shorter and cheaper, and your CPA handles the filing from there.
How HelloBooks helps
HelloBooks lets you invite your bookkeeper or CPA into the same books, so they can see the detail behind every number instead of working from exports. You can connect most US banks and credit cards for live feeds, or import statement CSVs for accounts that aren't connected, then reconcile them. Each reconciliation produces a report (opening balance, cleared items, outstanding items, closing balance) that exports as PDF or CSV, which is the item 1 paperwork your CPA wants. Lock Dec 2026 once it's signed off; reopening it is logged, which helps with the "don't keep editing after handover" rule. Every plan, including Free ($0, no credit card, no expiry), includes AP/AR aging and the P&L, Balance Sheet and Cash Flow reports from this checklist. Starter ($14.99/month) adds Excel export for anyone who prefers spreadsheets, and Business ($79.99/month) adds an audit log of changes. See also automated bookkeeping and accounting for LLCs.
FAQs
What does my CPA need from me at year-end?
Reconciled bank and card accounts through Dec 31, 2026, AR and AP aging, documentation for assets and loans, owner draw and contribution totals, payroll reports from your provider, and a note on anything unusual.
Should I give my CPA access to my accounting software?
Usually yes. Direct access lets them review the detail without repeated email requests.
When should I have my books ready for my CPA?
Ask your CPA for their timeline. A practical internal target is to have Dec 2026 closed and reconciled within a few weeks of year-end.
Do I need receipts for every transaction?
Keep the receipts and invoices you'd need to support your expenses. Your CPA can tell you what documentation they expect for your situation.
What if I find a mistake after I've handed over my books?
Tell your CPA instead of fixing it quietly, so the change doesn't conflict with work they've already done.
A clean handover is the best gift you can give your CPA, and your invoice from them will reflect it.
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