Level 10

Balance Sheet for small S Corporation

Forum|Forum|3 months ago
March 14, 2026
3 replies
15 views

I like to present the balance sheet for small S Corporation even when not required as it helps me reconcile beginning and ending cash and helps me locate expenses and contributions that could be overlooked. And, I think, that it is a tax return with a Balance Sheet is a better product. Downside is that it slows me down as these types of small clients don't keep good books and I need to investigate. The spreadsheet is an example of what I do.

What do you do?

2025
Bank Balance 1/1			39,165

Deposits/ gross sales		429,504

Expenses paid in cash, per client sheet	(436,212)




Balance, 12/31, calculated above	32,457

Balance per Bank			60,914

Unlocated Difference.		28,457

Tax Talk

sjrcpa

Level 15

Ask the client where the extra money came from.

Is that the balance per the bank statement, or is it the reconciled balance?

Is there a 12/31/25 credit card liability?

The more I know the more I don’t know.

S

strongsilenceAuthor

Level 10

thank you sjr

I know what to look for.

My main question is to survey the folks who don't report the BS.

IRonMaN

Level 15

To know that your total income and expenses are correct for a corporation or partnership, you have to prepare a trial balance. If you have a trial balance, there is no reason to not load the balance sheet into the tax return. Based on the questions that pop up here, you know there are a ton of returns being incorrectly prepared by Intuit users because they have no clue on what a balance sheet is.

Slava Ukraini!

abctax55

Level 15

I have *ONE* entity (an S-Corp) that doesn't have a set of books. Granted, some of the QBO 'books' are often GIGO.... don't get me started.

The one without any set of books I enter the totals into a QB file I set up for her. Income in, expenses per the excel spreadsheet, add/subtract a few things I know she doesn't put into excel. She gives me the ending cash balance.

Any difference - we sit down & chat about whether she took money out/put money in. Usually the answer is 'nope, I didn't' THEN we find out what income/expense figure is wrong.

I 100% agree - there is absolutely no way to be sure all activity is captured without reconciling cash, and having a balance sheet.

HumanKind... Be Both

S

strongsilenceAuthor

Level 10

Any difference - we sit down & chat about whether she took money out/put money in.

Helpful tip. I do this for a one client, so she knows the difficulty I have in preparing her tax return without her doing a proper cash reconciliation. It's a way of getting the tax return right AND promoting my skills AND defending my bill.

T

TaxGuyBill

Level 15

In my opinion, if they don't keep an accurate, balanced set of books, they should not be taxed as an S-corporation. In my opinion, it isn't an option.

Whether or not you include it on the tax return itself is up to you. I know that some people have the mindset to not give the IRS any information that they don't need (such as a Balance Sheet when it isn't required on the tax return), but I would still add it. Even if you decide you don't want it included with what is sent to the IRS, I would still prepare the return with it and have my copy and the client's copy with the Balance Sheet.

S

strongsilenceAuthor

Level 10

I appreciate kindness for all of you to share.

balanced set of books, they should not be taxed as an S-corporation. In my opinion, it isn't an option.

I have one client to talk with on this.

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