Discussion:Why Didn't CPA Include Undeposited Funds on 1120S?
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| Revision as of 05:02, 10 October 2009 Belle (Talk | contribs) (Yikes! My softw) ← Previous diff |
Revision as of 10:50, 10 October 2009 Southparkcpa (Talk | contribs) (My guess is that) Next diff → |
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| And it's interesting that you have an S-corp with a fiscal year end. Rather unusual, I believe.}} | And it's interesting that you have an S-corp with a fiscal year end. Rather unusual, I believe.}} | ||
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| + | {{ForumReplyPost|UserID=Southparkcpa|Date=10 October 2009|Text=My guess is that the CPA treated it like Accts receivable and "backed it out" of income and either it is NOT on the balance sheet and is backed out of income OR he treated is as M1. Wrong, but if we are playing family feud, that has to be a top guess! | ||
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| + | Personally, I "HATE" when I see an accrual Balance sheet on a tax return that is cash basis and then see an M1 item called "acc to cash diff". | ||
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| + | Please let usknow.}} | ||
Revision as of 10:50, 10 October 2009
Discussion Forum Index --> Basic Tax Questions --> Why Didn't CPA Include Undeposited Funds on 1120S?
Discussion Forum Index --> Tax Questions --> Why Didn't CPA Include Undeposited Funds on 1120S?
| 10 October 2009 | |
| I have a cash-based S corp client whose fiscal year ends June 30th. In reviewing the client's return for period ended 6/30/09, I see that the CPA didn't include the client's 8k in undeposited funds on the balance sheet (1120S Schedule L). Obviously, the books accounted for the amount.
Sound like an error on behalf of the CPA? Doesn't sound like good practice to me. I'm going to call her (CPA) on Mon. | |
| October 10, 2009 | |
| So how did the CPA get the Balance Sheet to balance if the 'undeposited' funds weren't on there?
I usually include them in the cash figure, assuming that the funds are subsequently deposited within a reasonable time. | |
| 10 October 2009 | |
| It's not in balance. I'm e-mailing her now and will follow-up Mon. She literally just left out the 8k on Line 1-Cash.
So, now the balance sheet in QB is off by 8k vs. the 1120S, Schedule L. Nice. | |
| October 10, 2009 | |
| Yikes!
My software (while no substitute for a tax professional - Hi Kevin) SCREAMS at me if things don't balance. Keep us posted on the outcome. And it's interesting that you have an S-corp with a fiscal year end. Rather unusual, I believe. | |
Southparkcpa (talk|edits) said: | 10 October 2009 |
| My guess is that the CPA treated it like Accts receivable and "backed it out" of income and either it is NOT on the balance sheet and is backed out of income OR he treated is as M1. Wrong, but if we are playing family feud, that has to be a top guess!
Personally, I "HATE" when I see an accrual Balance sheet on a tax return that is cash basis and then see an M1 item called "acc to cash diff". Please let usknow. | |
