Now that we have completed another tax filing deadline, there is one task that you should do to keep your company files up to date…. Many of you have sent your QuickBooks company file or other records to your CPA to use in preparation of your tax return. During the tax preparation process CPA’s often make adjustments that can include corrections, additions of cash expenses, recording of depreciation, etc.
To keep your books current and accurate, it’s important to record the year-end adjustments made by your CPA. If your CPA sent you journal entries they need to be recorded. If your CPA used an accountant’s copy you will need to import the changes to your company file. If you do not have any adjustments from your CPA, you should check with them and get the necessary entries.
Clients who record the CPA adjustments have more accurate records, I also find that if you do not record these adjustments you miss the opportunity to learn how to record transactions properly.
If you need any assistance recording year-end adjustments in your records, you can contact your CPA or I will also be happy to assist you.