Husband/ Wife LLC Balance Sheet Help Need

[cwilliambrown]

Husband/Wife LLC filing as a partnership. TurboTax Business. My balance sheet is out of balance. I'm fairly certain this has to do with the the amounts I entered for cash at the end of the year. We don't pay ourselves. We simply transfer money to a personal account as needed.

TurboTax populated the amount of cash for the beginning of the year. To get an amount for the end of the year, I went to the business checking account and found the balance listed on the December statement. Service receipts are over the limit, so I cannot skip it.

Below is a screen capture of Schedule L. I'll determine the proper way to do this later.  If someone would be so kind as to help me get through it this year, it would be greatly appreciated. 

[Mike9241]

I see multiple issues

1) the beginning balance sheet line 14 should agree with the beginning total of liabilities and capital line 22. so your accounting problems go back to 2020 and maybe earlier.

2) the balance on the December bank statement may not be what should be used for ending cash. it should be the bank balance on 12/31/21 + any outstanding deposits in transit and less any outstanding checks, fees et.

3) there was an increase in line 9a which says you added something to property and equipment but there is no additional depreciation (line 9b). This would only be correct  if the addition was not placed in service until after 12/31/2021

4) on your k-1's, which I can not see,  the total of beginning and ending capital should equal beginning and ending partners' capital on line 21 of the balance sheet 

we can't see what has transpired over the years so we can't really correctly tell you how to fix things. The out-of-balance balance sheet should prevent you from e-filing. I strongly recommend you see an accountant who can educate you in accounting and straighten out the tax return.  things like this do not fix themselves and could increase audit risk. 

[Snoopy70]

Thanks @Mike9241 

Thanks for your detailed reply. I'm not going to try to fix this myself. I decided tonight that it's worth every dollar to pay someone to clean it up and teach me at the same time, so I'm going to hire one of the bookkeepers via QB Live. 

Your reply tells me I made the right decision. Thanks again!!!

[Mike9241]

you're welcome.