Is it normal for my CPA to request bank statements when I've already provided a full P&L for our family business?

This is actually pretty normal, especially for a family business where someone new has taken over the bookkeeping. What your CPA is doing is practicing due diligence. When preparing tax returns, accountants have a professional responsibility to ensure the information they're filing is accurate. Bank statements serve as third-party verification of your P&L. They help verify that all deposits (income) have been recorded and that expenses match what's in your books. This isn't necessarily about trusting you - it's about the CPA following professional standards and protecting both themselves and you in case of an audit. That said, the communication style matters a lot. A good CPA should explain why they need these documents rather than just demanding them. And while caution about deductions is professional, being completely unwilling to consider legitimate business expenses isn't helpful.

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From someone who's been doing bookkeeping for small businesses for 20+ years - YES its normal for a CPA to request bank statements. Providing a P&L is great but the CPA is ultimately responsible for whats filed. Bank statements are the proof that the numbers on your P&L actually match reality. The real issue here sounds like poor communication and maybe a personality mismatch with your CPA. They should be explaining WHY they need these things instead of just demanding them.

I'm a small business owner and switched CPAs 3 times in 5 years. From my experience: 1) Yes its normal for CPAs to want bank statements. They're covering their own liability. 2) Not normal for them to be inflexible about legitimate deductions IF you have proper documentation. 3) Forcing you to use their bookkeeping services sounds like a conflict of interest and money grab tbh. I'd interview a few other CPAs. Just because this behavior is somewhat normal doesn't mean you cant find someone who communicates better and is more helpful with your specific situation!

I'm sorry for your loss and the challenges you've faced taking over the family business bookkeeping. From a tax professional perspective, requesting bank statements when you've provided a P&L is actually standard practice, especially in situations involving business ownership transitions. The CPA has a legal obligation to exercise due diligence and verify the accuracy of information before filing your return. Bank statements serve as independent third-party verification that your recorded income and expenses actually occurred. This protects both you and the CPA in case of an IRS audit. However, the communication style and inflexibility around legitimate deductions are concerning red flags. A good CPA should explain why they need documentation rather than just demanding it, and they should work with you to properly document legitimate business expenses rather than outright rejecting them. The fact that they're pushing their own bookkeeping services while being difficult about your work also raises some ethical questions. You might want to get a second opinion from another CPA to see if their approach is reasonable or if you'd be better served elsewhere.

I'm sorry for the loss of your mom and the added stress of taking over the family business finances during such a difficult time. As others have mentioned, requesting bank statements alongside your P&L is actually standard practice for CPAs - it's their way of doing due diligence to verify that income and expenses in your books match actual transactions. However, the bigger concern here seems to be the overall relationship and communication style. A good CPA should be explaining why they need these documents and working WITH you rather than against you. The fact that they're being inflexible about legitimate business deductions and pushing their own bookkeeping services while being dismissive of your work is problematic. Given that this resulted in late filing last year and you're experiencing the same issues again, it might be worth getting a consultation with 1-2 other CPAs to compare approaches. Many will do a brief consultation to review your situation and explain their process. You deserve to work with someone who respects the work you've done to get the business back on track and communicates clearly about what's needed and why. The documentation requirements won't change with a different CPA, but the experience of working with them certainly can improve significantly.

I'm really sorry about the loss of your mom and having to navigate all this during such a difficult time. Taking over family business finances is overwhelming enough without feeling like your CPA is working against you. What you're experiencing with the bank statement requests is actually completely normal - CPAs are legally required to verify the information they're filing, and bank statements serve as that third-party proof that your P&L numbers are accurate. It's not about not trusting your work, it's about professional liability and audit protection. That said, the way your CPA is handling this sounds problematic. A good CPA should be explaining WHY they need these documents instead of just demanding them. And the fact that they're being inflexible about legitimate business deductions while also pushing their own bookkeeping services feels like a red flag to me. My suggestion would be to get consultations with 2-3 other CPAs in your area. Most will give you a brief meeting to discuss your situation and explain their process. The documentation requirements will be similar everywhere, but you should be able to find someone who communicates better and works collaboratively with you rather than making you feel like you're being interrogated. You've done incredible work getting the business organized after such a loss - you deserve to work with a professional who recognizes that effort and supports you through the process.