Written by: Lisa Whyte, CPA

If you use QuickBooks, you understand that we use your data to prepare your tax return.  You may not realize that we don’t simply take your numbers and use them as is.  We typically verify the accuracy of your accounts. 

We frequently need to make some adjustments to correct your QuickBooks balances.   If our adjustments are not entered in your QuickBooks file, then your balances will remain incorrect.    If you have received adjustments from your accountant for your 2011 tax return, please be sure to enter them.   I personally prefer to use (when possible) the QuickBooks Accountant’s Copy because it allows clients to simply import our adjustments into their file.

Please review the adjustments that your accountant gives you.  Some adjustments, such as recording depreciation, we expect to do every year.  Other adjustments, such as reclassifying an expense, may signal that transactions have been improperly recorded.  Discuss these adjustments with your accountant; they may need you to start recording transactions in a different manner.

After you have entered our adjustments, discussed with your CPA what transactions need to be recorded differently, and followed these recommendations your QuickBooks reports will be more accurate.