Do Sub-Accounts need their own tax line asssignemts?

Technically you don't have to assign any tax accounts as your accountant will know exactly where things go on the return. I don't think I have a single client company who has tax lines assigned, or more than a handful assigned, because the books weren't originally setup by anyone overly knowledgable.

Your accountant will likely ask you for a P&L, Trial Balance and Balance Sheet. He/She may ask you for detailed reports after reviewing the summaries or, easiest for all involved, just give your accountant your QB file on a disc and let them have access to all the info.

As a CPA I can't imagine not receiving or having access to a printout of the general ledger.

if you run a report under accountant and tax you will see where things end up assigned.

List Lurker wrote:

Tara & Allan:

Thanks for the replies.

And I see both your points; was just trying to be parsimonious w/ what I sent my CPA, but agree, giving him the sub (& sub-sub) accounts is no big deal.

Also, re-read some of Allan's replies to other "tax line" queries and realize that this is not feeding some other tax program that I have (my CPA has some professional software of his own obviously) so it's probably no big deal.

Even though nothing's entered yet (i.e., Im just setting up QB right now), I have setup a report that shows all the ledger info, and see what you two mean.

P.S. In case you're wondering, as I was in Philly over the 4/15 T-Day, I had my CPA file extensions for my two businesses, but have to have them all done by 5/5 for a USC financial aid renewal for my middle kid.

Again, thanks for you prompt replies & help.

Regards

Since you are working with a CPA why not ask him if he wants you to map the accounts/subaccounts to the various tax lines. He/She may say "don't bother". If he/she wants you to map them then let him/her provide guidence on the mapping based on your line of business.