How Do You Prepare Business Taxes On Quickbooks?
One of the advantages of QuickBooks is its ability to keep track of income and expenses to report them on a U.S. federal tax return. However, to do that, you have to set up your accounts accurately to reflect the tax form you will be filing. It’s not difficult, but it can be a bit tedious, and even overwhelming if you don’t set up your accounts correctly from the start. Step 1 Choose the type of tax form you will file in the company settings. Your choices include 1040 (Sole Proprietor); Form 1065 (Partnership); Form 1120 Corporation; and Form 1120S (S Corporation). This will affect the Tax Line Assignments you can make to accounts. Step 2 Use the preset Charts of Accounts available through QuickBooks New Company Setup Assistant. The presets will provide a base of accounts and tax line assignments, though you can make changes and add more accounts. Step 3 Open the Chart of Accounts to create new expense and income accounts, and choose the “Tax Line” from the drop down menu to select the
