Are you ready for tax season? More specifically, are your business’ books ready for tax season?
If you or your bookkeeper are using QuickBooks to track your income and expenses you should be sure you can check off all of the following:
- All income has been tracked appropriately in QB (whether using deposit data or tracking accounts receivables)
- All deposits, debits, and checks have been entered into QB
- All credit card transactions have been entered into QB
- All credit card and bank statements have been reconciled in QB
- All cash expenses have been appropriately captured in QB
- Backup receipts and documents have been scanned and saved securely (for example in our secure online portal) in case of an audit
- Appropriate Adjusting Journal Entries (AJEs) have been entered for items such as inventory and prepaid expenses
- Any payroll expenses have been captured accurately tying out to filed payroll tax returns; payroll for Corporate Officers is broken out appropriately
- Sales tax collected and paid have been captured accurately creating and reducing a liability account
- Major purchases have been booked appropriately as fixed assets
- Shareholder distributions from a corporation or member draw from an LLC are appropriately booked as equity transactions and not expenses
- Health Insurance is appropriately captured split out for employees and owners/officers
- Loan payments have been split according to loan statements to reduce the liability account and capture interest expense
Once you are confident your books are complete you are ready to print the reports we will need to prepare your tax return. Be sure you are pulling reports on the same basis (cash or accrual) as you file your tax return; note: QuickBooks defaults to accrual reports but many taxpayers file their returns on the cash basis. We will need the following reports:
- Profit & Loss Summary (January-December)
- Balance Sheet Summary with Prior Year Comparison (as of December 31st)
- Detail of the following balance sheet items for January – December (not just as of December 31st):
- Fixed Assets
- Current Assets
- Shareholder Distributions
- Member Draw
- Mileage report (showing the total miles you drove in the year and the total number of miles driven for business purposes) *this report will not be available in QB
Worried your books aren’t up to par? E-mail me (email@example.com) and I will arrange a review of your QuickBooks file ASAP. You can simply upload an accountant’s or backup copy of your desktop QB file to our secure portal or grant us accountant’s access to your QB online account.
Haven’t even started yet? E-mail our schedule manager (firstname.lastname@example.org) and set up a meeting with either myself or David and we will see how we can help you get your business books on the right track.
Have very simple bookkeeping to do and no access to QuickBooks – e-mail Micalah (email@example.com) for our Income & Expense excel spreadsheet.
Feeling overwhelmed? Don’t worry, we are here to help! Feel free to e-mail me (firstname.lastname@example.org) with any questions or concerns regarding your business accounting needs.
And remember… it’s not right until it’s reconciled! Happy bookkeeping!