USA Need help with non-cash items

[sumdumgai]

Helllo. My first post on this forum and I hope I can get some help. I am a small S-Corp and deliver computer services (cash basis, no inventory, cost of goods, etc.). I've been in business for several years but this is the first time that I am doing my taxes myself (using TurboTax Business). I am having trouble balancing my end of year retained earnings to my cash balance sheet. In calculating my S-Corp ordinary income, I, of course, need to deduct certain expenses from gross receipts; i.e., expenses like vehicle mileage, office use, phone, etc. These expense items, of course, do not impact my cash account. Therefore, my EOY retained earnings and cash balance do not, and will not ever, match. Where do I record these non-cash expense items so that RE equals cash?

Thanks.

 

[parmatax]

I would strongly recommend that you contact a local accountant to assist you in this as you need to maintain a profit and loss statement and a balance sheet. Retained earnings will never equal your cash balance because of the non cash expenses and need to be recorded accordingly.

 

[Samir]

You really need someone with bookkeeping knowledge to help you. You cannot use these tax systems as your bookkeeping system. You need to keep your books and then use that information to do your taxes, not the other way around.