In 2011, my business was an LLC classified as a disregarded entity. On Jan. 23, 2012, we elected to change to an LLC taxed as a partnership. My husband and I are both involved in the business. This is our first year filing a 1065 partnership return. I am using Quickbooks for accounting (which I started using January 1, 2012) and TurboTax Business for our business tax
returns this year. I'm having trouble balancing my balance sheet in TurboTax.
At the end of 2011, we were just starting the business. We purchased a lot of equipment to be used in our business. On our 2011, 1040 schedule C tax
return we claimed and depreciated the equipment. Our business took a loss that year. Since we were just starting out, I did not use Quickbooks in 2011. I just kept all of our receipts and records to use on our tax returns.
For the beginning of the year balance sheet in TurboTax, I have entered zero for all of the relevant categories (Assets, Liabilities and Equity). From what I can tell from answers online, since it is a new form of the business, we are starting out at zero.
In Quickbooks, our end of the year balance sheet is balanced. However, it is not balanced in TurboTax. For assets, I entered our checking account balance at the end of the year and the total fixed assets, which include all of our equipment purchases from both 2011 and 2012, and the accumulated depreciation, which includes the depreciation from 2011. In Liabilities, I have sales tax
payable and a long term liability of a small loan. Then, in Equity, I put the cash contributions from purchases we made for the business this year and then property contributions for the equipment we purchased last year. We have our draws. Then, Quickbooks has an opening balance equity, which is how much we actually had in our checking account at the beginning of 2012. QB also has retained earnings, which is the 2011 depreciation. When I go to TurboTax, it doesn't show Retained earnings or opening balance equity. How can I get my balance sheet in balance if it is not including all of the categories that QB has?