QuickBooks can do WHAT? Prep for Taxes

QuickBooks can do WHAT? Prep for Taxes

Books-to-tax adjustments can be a time-consuming challenge for any accounting pro during tax season. Prep for Taxes (which replaces Trial Balance) simplifies your review process because it shows your clients’ profit and loss statement (P&L) and balance sheet all in one place. Plus, you can make adjustments from a single screen and export returns directly to Intuit® ProConnect™ Tax Online to save even more time.

What can it do?

Prep for Taxes helps you easily calculate taxable amounts without changing the reporting basis settings of the QuickBooks® Online company. This dashboard and depository lets everyone on your team view and approve adjustments, attach work papers, and leave notes about important tax-related matters. It also syncs your adjusted tax line amounts to ProConnect Tax Online, saving you and your team countless hours of manual data entry.

Where do I find it?

You can find Prep for Taxes right inside your QuickBooks Online Accountant client dashboard or from the accountant toolbox at the top when you are in your client’s books.

How do I use it?

To begin, just select the tax year and basis for the period you want to review.

To make your review easier, you can switch accounting methods between cash basis and accrual basis without affecting your client’s accounting method settings or view in QuickBooks Online. To switch, click on the pencil icon (1) at the top, then select the method you want.

Click on the  icons to expand and view the balances for each account in QuickBooks. As you review each account, you can easily make adjustments, add notes, and add attachments that can be viewed by all team members who have been given access to the client in your QuickBooks Online Accountant account. This way you, can work quickly and efficiently.

You can click the  icon to collapse each section when you’re done with your review.

Prep for Taxes records all your changes and sets them aside for a final review before it adding them to the adjusted amount.

Click to view the changes, and when ready, click Accept changes to incorporate them into the final tax balances.

You can even export the workspace to an Excel workbook or print it out to keep in your client’s work paper records.

After you’ve ticked and tied the accounts in QuickBooks, you’re now ready to map the accounts to each line of the tax returns.

Start by selecting Tax mapping at the top of the screen. Then select the appropriate tax form by clicking on the pencil icon.

Prep for Taxes will automatically assign the accounts in QuickBooks to each tax line, but it’s always a good idea to verify that each account has been mapped correctly. Any accounts that aren’t automatically mapped will be listed at the top of the screen.

To assign a tax line, just click Assign tax line from the unmapped accounts listed at the top or select the pencil icon next to the account you want to change.

After you complete the mapping, you can start the client tax return. If you use ProConnect Tax Online, balances can be sent to ProConnect Tax Online with a click of a button, saving you from tons of manual data entry. Here’s how:

Select the Choose tax option button at the top right of the Prep for taxes dashboard. You will see options to update existing return, create a new return, or export a CSV file.

You can choose to update an existing tax return already started in ProConnect Tax Online or Create a new return. If you’re using another tax prep software such as Intuit ProConnect ProSeries® or Lacerte®, you can export the mapped tax data to a CSV file which you may be able to import into that software.

Tips and tricks

  • Prep for Taxes can be used to organize and track your client year-end close process. Use the dashboard to attach all your year-end work papers and notes so to easily find them every year 24/7, 365.
  • By just clicking on the pencil icon on the tax mapping screen to select a different type of return, you can change the type of tax form you need for your clients. The accounts in QuickBooks will be remapped to the tax lines of the new return type.
  • Prep for Taxes is only available QuickBooks Online Accountant and each accountant user with access to the QuickBooks Online account has access to their own instance of Prep for Taxes.