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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I was skeptical about AI tools for complex business taxes, but I finally tried taxr.ai last month when our new accountant was similarly demanding about documentation. It was seriously impressive - uploaded our bank statements and P&Ls and it flagged exactly where there were discrepancies between them. Even helped me identify about $8,000 in additional legitimate deductions our previous accountant had missed. The tool even generated the documentation needed to support vehicle and equipment deductions that my CPA had been rejecting. Our accountant actually complimented how organized everything was when I submitted it!

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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.