How do I reconcile my balance sheet in TurboTax?
by TurboTax•27• Updated 1 month ago
If the income or earnings you entered differ from what's on your books, TurboTax Business Desktop will display a Not Reconciled screen. To reconcile:
- Select Federal Taxes.
- Select Balance Sheet.
- Follow the instructions to update existing accounts or enter new ones. Make sure your entries match the amounts in your books.
Here are some troubleshooting steps to take:
- 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 by manually editing your return.
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