So your tax return is filed—great! But now your QuickBooks file doesn’t quite
match. Before you panic or start randomly clicking around in QBO, take a breath. Here’s a simple, accountant-approved way to get your books in sync.
Step 1: Pull the Trial Balance
Generate a Trial Balance in QuickBooks (Desktop or Online) using the same accounting basis—cash or accrual—as your tax return. Double-check the date range. Accuracy here saves headaches later.
Step 2: Export to Excel
Once exported, combine debits and credits into a single column. Use parentheses for credits. A little spreadsheet magic (hello, formulas!) goes a long way.
Step 3: Add Tax Return + Journal Entry Columns
In your new spreadsheet, add two columns: one for the tax return values and one for the journal entry adjustments. This is where you’ll spot the differences between your books and what your accountant filed.
Step 4: Balance It Out
Each column should total zero. If not, the adjustment goes to Opening Balance Equity. Sometimes you will not have all the detailed information that you need. Ask the accountant who prepared the tax return for their workpapers for the details you need. Once it all balances, you’re ready to make your adjusting journal entry in QuickBooks.
Step 5: Book the Entry
- Create a journal entry dated the last day of the fiscal year. Include every account—yes, even income and expenses except bank accounts, accounts receivable and accounts payable.
- For bank accounts, accounts receivable and accounts payable you will add the individual transactions to the correct Vendor/Customer offsetting those entries to Opening Balance Equity as well. AP could be entered as bill, AR as invoices and uncleared bank information as checks/deposits/expenses.
- Now check the Balance Sheet. All is well if Opening Balance Equity now equals zero. If not, dig deeper for the reason behind the discrepancy.
Let BudgetEase Handle the Heavy Lifting
Whether you're a small business, nonprofit, or just knee-deep in QuickBooks catchup, outsourcing your accounting service to BudgetEase means fewer errors and more peace of mind. Contact BudgetEase today—because your books should balance, not baffle.
