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A few points to prepare QuickBooks for tax season

by Manoj Singh rathore Digital Marketing Head and Founder

When Tax season approaches and prior to giving your QuickBooks file or accounts to a tax accountant or CPA. Below are a few helpful tips to cut the quantity of work related to making changes and alterations with your own accountant. I believe all business owners and bookkeepers ought to be aware of this. Having clean novels and simple to understand financial statements, will decrease your tax preparation expenses and will give you a lot better understanding of the tax situation, not to mention that the ability to plan and avoid surpises down the line.

 

Some pionts to recall are:

 

Method of Accounting: Be certain that the reports are in the right accounting method (Cash or Accrual) Understand that many small businesses begin at cash basis reporting for taxation purposes and as soon as they convert (or opt to shift to) Accrual basis, changing back to money basis is prohibited in five decades.

 

 

Accounts Payable: Be sure that open bills (A/P Aging Overview) are now for money owed, it's quite common to have bills and tests replicate in a QuickBooks file, this double counts costs.

 

Accounts Receivables: Be sure all open invoices in accounts receivable record (A/R Aging Overview) are actual invoices for work done / merchandise delivered and all invoices are collectable. In the instance of overstatement, there will be additional income mentioned which shouldn't be.

 

Accounts with Negative values: Please recall that normally there should be no negative reports in the P&L Summary Report (unless is a recurrence of any kind). In the Balance Sheet is more common to observe reports for example "Accumulated Depreciation", " Allowance for poor Debt" , "Shareholder Distributions" , "tug" as negative reports, but it doesn't necessarily indicate they ought to exist.

 

Uncleared Checks and Deposits: Bring a record of uncleared checks and deposits from the bank statement to be sure that they're really outstanding items. . In order for this to function, all bank statements have to be reconciled first.

 

 

Chart of Accounts: attempt to use a consistent graph of accounts would be the previous year

 

Fixed Assets: attempt to assign a sub-accounts for every Significant fixed advantage to make it Simple for the accountant to identify and build depreciation tables to get them.

For any queries related to QuickBooks visit quickbooks support.


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About Manoj Singh rathore Professional   Digital Marketing Head and Founder

401 connections, 57 recommendations, 2,071 honor points.
Joined APSense since, November 6th, 2012, From New Delhi, India.

Created on Oct 25th 2017 23:20. Viewed 335 times.

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