📑Start the tax return preparation process by collecting last year's tax return, current year balance sheet, and profit loss.
💰Compare the beginning retained earnings on the tax return with the annual balance sheet.
📝Make adjustments for depreciation and distributions to calculate accurate retained earnings.
👩💼Enter the updated numbers on the balance sheet and calculate liabilities and equity.
💼Review the profit and loss statement and enter the total income on the tax return.
What documents do I need for tax return preparation?
—You will need last year's tax return, current year balance sheet, and profit loss statement.
How do I calculate retained earnings?
—Compare the beginning retained earnings on the tax return with the annual balance sheet and make adjustments for depreciation and distributions.
What adjustments do I need to make on the balance sheet?
—Make adjustments for depreciation and distributions to ensure accurate calculation of liabilities and equity.
What information should I enter on the tax return?
—Enter the updated numbers from the balance sheet and profit loss statement, including the total income.
How can I ensure accurate tax return preparation?
—Collect all necessary documents, carefully analyze the balance sheet, and make precise adjustments for accurate calculations.
00:02The video provides a step-by-step guide to tax return preparation, starting from collecting necessary documents to making adjustments for depreciation and distributions.
00:52The first step is to collect last year's tax return, current year balance sheet, and profit loss statement.
03:06Compare the beginning retained earnings on the tax return with the annual balance sheet to ensure accuracy.
03:45Make adjustments for depreciation and distributions to calculate accurate retained earnings.
04:46Enter the updated numbers on the balance sheet and calculate liabilities and equity.
05:26Review the profit and loss statement and enter the total income on the tax return.
