How do I reconcile my balance sheet in TurboTax?

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:

1. Select Federal Taxes.
2. Select Balance Sheet.
3. 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.