
Schedule L balance sheet is out of balance on Form 1065, 1120S, 1120 or 990 in ProSeries
by Intuit•1• Updated 3 months ago
This article will provide tips and common areas to review when the Schedule L balance sheet is out of balance, for Form 1065, 1120S, 1120, or 990 Part X.
Forms 1065, 1120S, and 1120:
- There's a correct order for completing a business return in ProSeries. It's important to complete the return in this order:
- Complete the rest of the tax return.
- Complete Schedule M-1.
- Complete Schedule M-2.
- Complete Schedule L.
- Make sure all of the numbers have been entered correctly, with no transpositions.
- Review the signs for positive and negative amounts, and make sure they're entered correctly.
- Make sure the source balance sheet (financial reports) are in balance.
- Beginning balances are found on the previous year's tax return as ending balances in Schedule L, column (d), or if this is a new company, from the Financial Report Balance Sheets.
- Make sure all assets in the balance sheet are listed as the book balance (Schedule L- Balance Sheet Per Books).
- Beginning and ending inventory flow from Form 1125-A, Cost of Goods Sold.
- Review the accumulated depreciation on depreciable assets. Prior year's accumulated depreciation + Current year's depreciation expense = Total accumulated depreciation.
- Retained earnings should include current year's book income or loss.
Form 990, Part X:
- Make sure all the numbers have been entered correctly, with no transpositions.
- Review the signs for positive and negative amounts, and make sure they're entered correctly.
- Make sure the source balance sheet (financial reports) are in balance.
- Beginning balances are found on the previous year's tax return as ending balances in Schedule L, column (d), or if this is a new company, from the Financial Report Balance Sheets.
- Retained earnings should include current year's book income or loss.