Year End Tax Return Reconciliation procedure
How does everyone handle year end reconciliations to balance to the tax returns? Typically, tax preparers provide us adjusting entries when the tax returns are completed (anytime from February - October). Our procedure has always been to make the adjusting entries in December of the same tax year as tax return is for, rerun December financial statements, and then carry forward the correct beginning balances. Of course, that is becoming increasingly difficult to provide timely financial statements for the current year because of how many clients are late tax return filers. How do you handle recording the adjusting entries to balance to tax returns without having to rerun months of general ledgers & financials due to change in beginning balances and possible depreciation expense changes? Thanks for your recommendations!