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Step 1
Determine the individual filing situation. Are tax forms 990, 990PF, or 990T used? If so the account needs lines assigned from the tax forms. Create a dummy corporation (see Step 3) if any of the following is true: There was an upgrade from a previous version of QuickBooks, the chart accounts are already setup, or the tax form of the company has changed.
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Step 2
Makes sure that QuickBooks accounting software is properly setup for tax preparation. If not, go to the list menu and select "Chart of accounts." Next, select the proper account. Choose the account from the list and then click on "Edit account." Select the tax line drop down list and choose the proper tax line for the account.
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Step 3
Setup a dummy company. Select "file" from the main menu. From the file menu, choose "New company." Enter a name for the dummy company and select the type of business that is most like the current company. Select next until the software prompts the user to save the dummy corporation.
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Step 4
Print and compare the dummy company and the current company's chart of accounts. Choose "Chart account" from the list menu. Click "Print" from the chart of accounts dialogue box. Print the chart accounts from the current company and compare the two accounts. Then set the current accounts to match the dummy company.
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Step 5
Check the tax line assignments. Click on the "Reports menu" and choose "Accountant and taxes." Then select "Income tax summary" from the accountant and taxes menu. Check date range to make sure the dates are correct. Click on "Tax line unassigned" at the end of the report. Check the report lines to makes sure none of the unassigned line assignment are income tax related.
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Step 6
Verify that the account distributions are correct. Choose the "Reports menu" from the QuickBooks software. Select "Accountant and taxes" and then choose the "Income tax summary" option. Check the date range to make certain the dates are correct. If any of the numbers are incorrect, double click on the amount area to bring up the zoom report. Change any incorrect amounts and click on "Save." Repeat as necessary.
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Step 7
Compare and print account distributions summary. Compare all amounts with the amounts in the QuickBooks software. From the file menu, select "Print" to print the report for a hard record of the income taxes.
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Step 8
Export the Quickbooks file to the tax software. Open the Tax software and choose "Import." Select the quicken tax file and export it to the external software.
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Step 9
Print the tax report from the external tax software and compare it to the QuickBooks reports to ensure the veracity of the information.
