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New Client with incomplete previous years of QBO entries with complete 2019 entries  

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(@maureen-18)
Joined: 1 year ago
Posts: 2
03/03/2020 11:41 am  

I have a new client who asked me to get their 2019 Quickbooks  online in order.  The problem is that they have incomplete previous years (from 2012 on) and the last reconciled accounts were in 2015 and 2016.  I can't reconcile 2019 until all of the prior years are reconciled but they want to file 2019 taxes without reconciling the prior years.  Any ideas on what I should recommend to them if they don't want me to go back and enter all the transactions for prior years? Is there a way to make adjusting entries to start 2019 fresh but account for the changes in the opening balances?

Any help would be appreciated. 

 

 


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(@casey-4)
Joined: 1 year ago
Posts: 131
03/03/2020 1:06 pm  

Assuming the 2018 tax returns has been completed, get the 12/31/18 Trial Balance from the CPA.  Make 12/31/18 AJE's, to make the QB file match the CPA TB.  Then, close and PW protect as of 12/31/18.  Next make a new account, called Prior Period Adjustments.  This should be an Other Expense type.  When reconciling the 2019 accounts, post any adjustments to the new PPA account.  Let the CPA know you have made these adjustment, so he/she can determine if prior tax returns need to be amended or not.  THEN educate your client.


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(@maureen-18)
Joined: 1 year ago
Posts: 2
03/03/2020 2:24 pm  

@casey-4

THANK YOU!!!!


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