Tax Year Prior to 2020: Books are out of balance

[rzybrick]

My books are out of balance. I own a small part time LLC with my business partner. We track (or try to track as best we can) expenses using excel. 

Our total assets, currently, are $23k. Our total liabilities, currently, are $28500. My business partner contributed $12k in 2019. Advice on how to get the books back into balance? 

Thanks

[ColeenD3]

Unfortunately, balance sheets are out of scope for TurboTax.

[barry13]

First of all, it is very difficult to balance books.  If you are out of balance, I recommend printing out a copy of your bank accounts and investment accounts and go line by line to make sure every penny was accounted.  If everything is there and you are still missing $5500, you'll need to think back where this went.  Ask your business partner.  What could account for this difference? Maybe you withdrew $5500 or some of it was used for something else?  Was there a purchase that you made in cash?  

[WKins2]

First, if you filed a return last year, make sure your ending balances match the beginning balances for the beginning of 2019. If they do not, this is where your issue will lie ( well at least one of them if the difference is equal to what you are missing).

If they do match, you need to look at every bank statement, credit card statement and any loan statements to make sure each transaction (deposits and debits) match what you have in your accounting software. Make sure the loan payments are split between principal and interest, and partner contributions are marked as that and not income and any partners withdraws are marked as that and not an expense.