My balance sheet doesn't balance. I am single owner s corporation. Do I really need to have a balance sheet anyway? How do I fix this?

[MinhT]

https://ttlc.intuit.com/replies/3302277

[sorrell-nick]

Under that criteria, I have to have a balance sheet. So....how do I make it balance out if it's off? All my numbers are correct.

[MinhT]

It is very difficult to answer your question without seeing all the numbers. Please look especially at capital stock, additional paid-in capital and retained earnings. Trace the variations from last year.

[sorrell-nick]

Last year I didn't have to do a balance sheet. So for 2017 I just entered my cash balance at beginning of year and end of year. The rest of the balance sheet looks like this:

Beginning of tax year:
Assets:
Cash $22,282
Total Assets $22,282

Liabilities/Equity:
none entered

Balance:
$-22,282

End of year:
Assets:
Cash $13,319
Total Assets $13,319

Liabilities/Equity:
Retained earnings $12,574
Total Liabilities/Equity $12,574

Balance:
$-745

Does this even matter since I am the only member? Or will the IRS not like my balance sheet?

[MinhT]

Did you take any distributions in 2017?

[sorrell-nick]

Yes

[MinhT]

So your distribution was the reason. For 2016, you could enter: Cash $22,282 - Additional paid-in capital $22,282.
For 2017: Cash: $13,319 - Additional paid-in capital $745 ; Retained earnings: $12,574.
From this, I can infer that your distribution in 2017 was $21,537.

[sorrell-nick]

Thank you so much, that makes sense! It is now in balance.

[Rayhanf]

First time user of Turbotax.  C corporation.  I have used Quickbooks for many years.  I cannot get past the balance sheet.  I have spent hours on this and do not get past it.  Retained earnings, and two other problems that I do not know how to get around.  I do not know how to balance these issues.

[VictoriaD75]

If the income or earnings you entered differ from what's on your books, TurboTax Business will display a Not Reconciled screen. To reconcile:

1. Click the Federal Taxes tab.

2. Select Balance Sheet in the menu below it.

3. Follow the instructions to update existing accounts or enter new ones. Make sure your entries match the amounts in your books.

Some tips

• Check that all amounts were entered correctly.
• All amounts should be entered as positive unless your balance sheet balance has an uncharacteristic negative balance.
  • A cash overdraft would produce a negative amount.
  • If you paid an amount on an account payable that was more than the invoice, you might have a negative amount in your liabilities.
  • Previous losses in your retained earnings larger than any profit would be entered as negative retained earnings.
• Make sure your previously prepared balance sheet is in balance. Check for bookkeeping errors and make sure that Assets = Liabilities + Equity.
  • If you have a prepared balance sheet from your records, the amounts entered in TurboTax Business should not be different than those on the prepared record.
  • Book profit or loss for the period should be added to retained earnings.
• If you imported your balance sheet data from QuickBooks, confirm that all amounts imported correctly and that no information is duplicated or missing. If necessary, adjust balances.
  • Depreciation does not import from QuickBooks. Oftentimes tax depreciation (as computed by TurboTax Business) is booked to QuickBooks by the business.
• To see what's on a particular line (or to correct it), you can view or adjust the line item in Forms mode.

Creating a new balance sheet for your tax return?

You may need professional guidance to recreate a prior- or current-year balance sheet if your business's records are incomplete or missing.

• Beginning balances are found on your previous year's tax return as ending balances. Beginning with previous year's balances, add or subtract business activity to reflect current year's ending balances.
• Prepare a cash flow statement that accurately reflects increases and decreases to balance sheet accounts.

• Make sure all assets are listed at their basis (or book balance) amount. Beginning and ending inventory flow from the appropriate lines of the Cost of Goods Sold section of Schedule A.

• Appropriate records must be kept supporting accumulated depreciation (depreciation claimed in prior years) on depreciable assets. Previous years' accumulated depreciation plus current year's depreciation expense are added together to get the ending accumulated depreciation amount.
• Retained earnings amounts should include current year's book income or loss.

[priorityrecords73]

Hi. I have a question and you seem like the right person to ask. I am in Georgia and am an S Corp. Total sales were over $350K, but year end assets were under $250K. Do I have to file the balance sheet and schedule L and M? This is so confusing.