I'm sure this isn't what you want to hear, but first of all, talk to your CPA before you take him/her your financial info. Also, if you don't already have one, ask your CPA what is the simplest accounting software program that you can use and your CPA is also familiar with. There are so many out there, and CPAs don't know all of them. That way your CPA can help you with the software and get everything ready for your audit and tax preparation. I have worked with about a dozen different accouting software programs and they all have the same basics, though some are more detailed than others. The detailed info you present to your CPA will make the job easier and quicker for him/her and can save you money in your accounting fees. Your CPA should give you a check list of types of deductions you are to have ready.
Then, even though this is a lot of work, you need to either use the accounting software (this is where your CPA or his/her staff can help you) or a spread sheet to separate the items from all of those receipts into various groups (such as large equipment, materials (things your items are made of), office equipment, office supplies, small equipment (the small equipment used to make your products), etc. If you don't sort and list your receipts yourself, your CPA will have to take time to do so and you will probably be billed for that extra time and labor. Also use those receipts and your bank statements to record mileage. There are 2 ways to include it in your deductions, and those receipts give you proof that you did drive that distance. Your CPA will let you know which type of deduction is best for you. Another thing to record is your utilities, trash expense, computer/phone expense, home insurance, etc. You can figure what percentage of your house is strictly used for your business and deduct that percentage of those expenses. It is surprising how much those can add up to.
Also, discuss with your CPA how you should list your inventory. You want to start the with the same method that you plan to continue with. It is very hard and looks complicated when you try to change methods later on. It can be very confusing when figuring inventory, as there are 3 basic types of inventory (finished items, materials that are used for items in the production state, and the materials that haven't been used yet). On top of that you need to inventory all of your equipment so it can be depreciated each year. You CPA can help you with all of these, and it is worth the money to have your business start out on the right/legal step. It can save so much headache in the future. Once you get your system set up in a method the CPA can use, it will be much easier later on.
I know this is a lot of work, but it is a part of being a successful business person. I had 25 years experience in accounting and business, and know the value of a good CPA and keeping accurate records. If you have any questions, don't hesitate to ask your CPA. That is his/her job and the more info you can provide might mean the more money you will save in your taxes. Good luck!
