Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Cleaning Up Books - Part 1 | Incite Tax #irssucks

18 Jul 2023 · 1 min

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In this opening segment, the presenter emphasizes that clean books are essential not just for tax filing but as a foundational practice. The first critical step is to ensure every financial transaction is recorded in the accounting software. He explains the reconciliation feature, which involves comparing the software’s recorded transactions against actual bank statements to confirm they match exactly. This process verifies that all entries are present and accurate, and it helps identify and remove any duplicate entries, thereby achieving truly clean books ready for tax preparation.

Chapters

Tips to clean up your books for tax filing purposes. And I will say this, tips for cleaning up your books, period. You shouldn't just have clean books only to file taxes. The first thing you want to do is make sure that you actually have all of your transactions in your accounts. Accounting softwares have a reconciliation function. That is an accounting word that basically means I go in and I look at my books and I can see the transactions inside my book software. I compare those transactions to the actual bank statements that I have, making sure that those are reconciled, meaning everything in my books is what my bank statements show, and what my bank statements show is what I show in the books. So I don't have duplicate transactions inside my software. That is a very important step to make sure your books are cleaned up.