17 Nov Confirm Beginning Balances
Confirm Beginning Balances
It is very important, due to the ease with which transactions can be changed in QuickBooks to confirm that the beginning balances are still the same as the ending balances from the prior year. The most efficient way to do this is to create a Balance Sheet and confirm that it matches the Balance Sheet in the tax return or from the accountant. To create this report choose Reports > Company and Financial Reports > Balance Sheet Standard > Change the date at the top of the report to the end of the previous year. If the amounts do not match, investigate and correct the differences before moving forward. If the amounts have changed due to an error in the previous year, discuss the situation with the accountant to determine how the error will be corrected (i.e. going back and fixing it in the prior year or having the difference effect the current year).