After having your business income tax returns filed, there are steps that should be taken to ensure the information on the tax  
returns and the QuickBooks files match.

• Year-end adjusting journal entries should be made to close out items such as work in progress, depreciation, converting from Accrual to Cash basis, etc. Merely switching your QuickBooks financial statements from Accrual to Cash with the click of a button DOES NOT give you the correct Cash Basis. 
• Year-end loan balances should match the year-end statements provided by the lender. 
• "Opening Balance Equity" should be cleared. This is a "catch all" account for items that have not been accurately entered. THIS ACCOUNT SHOULD BE ZERO. 
• Accounts Receivable and Accounts Payable should be reviewed at year-end to make sure that they are accurate. 
• Profit & Loss Statements and Balance Sheets should be reviewed as of year-end to make sure they reflect the information on the Company tax returns. 
• Vendors, employees and customer jobs that are no longer being used, should be made "inactive ". 
•  A back-up of your bookkeeping and accounting systems should be made as of December 31, and should be kept off premise. 
• 2007 should be closed by the Administrator so that changes cannot be made to 2007. As tax returns have been filed based on the information provided, changing transactions will made the income tax returns more subject to scrutiny upon an audit.