New sole proprietor client as of 1/1/08 has no financials to use as beginning balances, only his Quicken file which shows virtually all accounts as expenses other than bank account. Can I create inventory, fixed asset, notes, etc w offset to RE?
I'd try to get his prior year tax returns and info from the tax preparer--if he had inventory, he should've done a physical count at year end, there should be a record of fixed assets for depreciation, etc. Notes or loan payables, you should be able to get a balance from bank records.
PLEASE mark this answer as solved or post additional questions. Thanks so much!!!
Michelle L. Long, CPA, MBA
Author of the book "Successful QuickBooks Consulting: The Comprehensive Guide to Starting and Growing a QuickBooks Consulting Business"
National Trainer for Intuit Trainer/Writer Network
Advanced Certified QuickBooks ProAdvisor
I do have 2006 and 2007 tax returns, but not much else. The client's former CPA passed away in February and we have been unable to get any records or documents from her office. I do have copies of loans/mortgages as well. Should I record his balance sheet balances with an offset directly to Retained Earnings or set up a special equity account to capture the beginning balance adjustments and recording?
Since they're a sole prop, they technically do not need a balance sheet. But, it is advisable to set one up if you can. So, I'd get the balances that you are able to determine and use Retained Earnings to set up the beginning balances. If you're starting at 1/1/08 (2008 taxes haven't been filed?), then use info from the 2007 tax return to help identify the fixed assets.
PLEASE mark this answer as solved or post additional questions. Thanks so much!!!
Michelle L. Long, CPA, MBA
Author of the book "Successful QuickBooks Consulting: The Comprehensive Guide to Starting and Growing a QuickBooks Consulting Business"
National Trainer for Intuit Trainer/Writer Network
Advanced Certified QuickBooks ProAdvisor
