The QuickBooks software program provides everything a business owner needs to keep track of their business finances. QuickBooks is less regularly used to help in the preparation of corporate taxes. There are two options in the preparation of corporate taxes--to prepare the return by hand using the reports generated by the QuickBooks file or to upload the file to the TurboTax website to complete the tax forms.
Corporate Taxes and QuickBooks
Utilise the tax line feature of QuickBooks. To see if your tax lines are assigned, click on the 'Reports' tab on the top menu. When the 'Reports' menu pops up, find the 'Accountant' section and choose the 'Tax Preparation' report. Each account in your chart of accounts will be listed. If the tax line reads 'Unassigned', you will need to edit the account to assign the appropriate tax line category to it. The "Tax line" category in the "Edit account" window is located at the bottom of the window. When you click on the 'Edit taxline' bar at the bottom of the edit account page, there will be several choices of income and expense accounts. Click on the one that fits that particular account. It is absolutely essential that these accounts are assigned correctly. You may need to consult a professional to aid in the assigning of the tax line options.
Use tax software in order to get the additional forms automatically generated based on the information you enter. If the tax software you use is purchased from Intuit, find and click on the 'Import QuickBooks' data button on the main menu of the tax prep software and let it do the work for you. The software will ask you to browse your hard drive for the location of the QuickBooks file you wish to import. Find the file and click on it.
Choose the direct upload option if you choose to upload the QuickBooks file directly to the Internet website instead of purchasing the software in the store. For example, there is an option on the TurboTax website to upload a QuickBooks file, and the online software generates the proper tax forms for you.
Things you need
- QuickBooks software
- Profit and loss statement
- Year-end balance sheet