How to understand working trial balance?

[TG]

How to create a working trial balance for the company and how to understand its inputs?

[sjrcpa · Accepted solution]

The trial balance will come from the accounting software.

Understanding it requires some bookkeeping and accounting knowledge.

[TG]

I understand accounting rules but don’t understand how to manipulate p and l and BS to create the differences for making a an M1 adjustment

[TG]

in lacerte

[sjrcpa]

First you need to identify the book tax differences. I take the trial balance and post Tax Journal Entries to it to get to a tax trial balance.

[TG]

Ohk... So if I say that I have to make a WTB for year 2018, then I will have to take 2017 ending trial balance from Lacerte and then bring it forward for year 2018 line items and do the reconciliation?

[sjrcpa]

No offense intended but I think you need more help than you are going to be able to get here on the forum. Please try to find a more experienced accounatnt to help you.