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Hi, my name is Mark. I will be happy to help you with your questions.
Where the difference between the two are so close, this looks like it is a large part of the difference.
I am assuming the Gross Receipts were higher in QuickBooks?
Does everything else on the balance sheet reconcile?
Does the net income tie to the balance sheet?
Sorry, does the net income tie to the tax return.
The balance sheet in QuickBooks.
It sounds like the prior account may have made adjusting entries that impacted the sales and that these entries were not recorded in QB.
On the tax return is their a liability for deferred income?
It sounds like this is an S-Corporation.
The return is going to be impossible to reconcile until you have all of the information. You are going to need the company's income statement and balance sheet.
Once you have all the information, it will be easy for you to find the differences.
Ok, that is the one you mentioned that had a large difference in sales.
What kind of business does the company do?
I do not know why there would be such a large adjustment to sales?
By reducing sales you would be decreasing the retained earning so I agree that this is a large part of the difference.
Was that your only difference in reconciling the income statement to the tax return?
Do all of your differences tie to the difference in retained earnings?
You also have the M-1 adjustments that you need to consider.