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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2608
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I'm wanting to know if the net income on Balance Sheet and

Customer Question

I'm wanting to know if the net income on Balance Sheet and the net income total on Profit & loss do not match what is needed to make this match?
Submitted: 2 years ago.
Category: Finance
Expert:  PDtax replied 2 years ago.

Hi from Just Answer. I'm PDtax, and can assist.

Customer: replied 2 years ago.
Balance Sheet & Profit & Loss, the net income should balance correct? if not what do I need to do to complete this process?
Expert:  PDtax replied 2 years ago.

What I suspect is that you're preparing your business tax return. The balance sheet for that is kept on the book basis, while the net income for the tax return is tax basis. They almost never agree.

You reconcile the difference on Schedule M-2 of the 1120, for example.

Expert:  PDtax replied 2 years ago.

Can you confirm the entity type?