Is Your QuickBooks Lying to You?

How to Get Truly Tax Return Ready

If you think you can hand your CPA a Profit & Loss report from QuickBooks and call it a day, think again. As someone who's worked with hundreds of businesses, I can tell you: QuickBooks can lie — and it often does.

Not intentionally, of course. QuickBooks is a tool. But like any tool, it’s only as accurate as the way it’s maintained, reconciled, and reviewed.That’s why being tax return ready isn’t just about having financial statements — it’s about making sure they’re right.

What It Means to Be "Tax Return Ready"

Having tax return ready financials means your CPA can prepare your tax return without cleaning up errors, reclassifying transactions, or guessing what a mystery balance means.

Here’s what we look for:

• Your Balance Sheet matches your tax return — line for line, dollar for dollar.

• Your books are on the right basis (cash or accrual) — and consistent with your filing method.

• All bank accounts, loans, and credit cards are reconciled — no stale transactions cluttering your reports.

• Accounts Receivable and Payable make sense — especially if you’re a cash-basis filer (hint: they should usually be zero).

• Inventory is accurate — no negative quantities, no outdated valuations.

• Fixed Assets match your prior year tax schedules — no missing depreciations or unrecorded disposals.

• Equity transactions are clean — showing real contributions, distributions, and no personal expenses disguised as business.

• Profit & Loss report reflects the true story — without redundant categories, hidden transactions, or wrong margins.

• Payroll and contractor payments tie back to your W-2s and 1099s — properly categorized and reconciled.

• Special expenses are properly labeled — like officer insurance, charitable donations, or political contributions.

• Loan payments are correctly split between principal and interest — not dumped into "loan expense."

In short:Being tax return ready means your books tell the truth — clearly, completely, and in a language your CPA (and the IRS) can trust.

Why It Matters More Than Ever

If you think it’s “good enough” to hand over rough financials and let your CPA sort it out, consider this:

• It costs you more. CPAs bill by the hour — the messier your books, the bigger your bill.

• It delays your filing. Errors mean endless back-and-forth, which can delay refunds or cause late penalties.

• It invites scrutiny. Inaccurate or inconsistent filings raise IRS red flags — sometimes even audits.

• It clouds your decisions. Dirty data doesn’t just hurt at tax time — it undermines every business decision you make all year.

Clean books aren’t just for your CPA.They’re for you.

So, Is Your QuickBooks Lying to You?

If you’re not sure — it probably is.

But the good news?Getting tax return ready doesn’t have to be overwhelming — when you have the right partner.

At Availing Echoism, we specialize in cleaning up financials, preparing tax return ready reports, and making sure your CPA can file without unnecessary stress, cost, or risk.

Let's Get You Tax Return Ready — the Right Way.

📞 Call us at 763-220-2292📧 Email us at hello@availingechoism.com