Our bookkeeping provider shut down and we lost access. Which records should we reconstruct first for a tax review?

Losing cloud access does not remove the business's duty to substantiate its return. Reconstruct the records supporting filed positions, starting with independent statements and source documents, while preserving any exports and audit trails. A recreated summary should disclose its sources and gaps rather than pretending to be an original ledger.

A specific business-owner situation

A bookkeeping platform shuts down before an audit. The business still has bank statements, payroll filings, customer invoices and prior tax workpapers that can rebuild much of the transaction history.

Illustrative example, not a client result.

What to establish before filing

1. Preserve available backups and exports.
2. Reconcile independent financial and transaction records.
3. Prioritize material deductions basis and reported receipts.

Which fact changes the answer?

A missing ledger differs from missing underlying evidence. Independent invoices and third-party records can materially strengthen a reconstruction.

A mistake to avoid

Bank withdrawals alone may not prove the business purpose or tax character of every expense.

Records that support the decision

• Bank and processor statements.
• Invoices payroll and fixed-asset files.
• Prior returns and preparer workpapers.

The decision to document

Create a source-labeled reconciliation and a gap list, then establish regular offline exports for future periods.

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Related questions

• We discovered an IRS notice after moving offices. Can we assume the response deadline starts when we found it?
• I signed a tax power of attorney personally. Does it let the advisor handle my company's payroll notices?

Sources and editorial context

• IRS Publication 583: business records

General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.