Why do you need certain balances from me each month?

Providing us with certain balances is necessary to get your financials accurate. At the very least, you will want to provide these numbers to us or your accountant at the end of each year (as of December 31) for tax purposes. But if you can provide them to us each month, your financials will be more accurate throughout the year. 


If you purchase and hold onto inventory for the sake of resale, the value of the purchased inventory does not become an expense until you sell it. In the meantime, it will stay on your Balance Sheet as an "Inventory Asset". So let us know what the total value is of your inventory on hand at the end of each month, so we can properly reflect the asset and expense amounts on your financials. This is the value of what you purchased the inventory for, not what you would sell it for.

Sales Tax

If you collect Sales Tax from your customers, your deposits (and therefore your Income) will reflect these amounts. But since it's not truly income, it's best to separate out the Sales Tax collected from your income figure and instead show it as a "Sales Tax Liability" on your Balance Sheet. This amount will represent what you have to pay in. So let us know what the total value is of all of the Sales Taxes you've collected and haven't yet paid in up through the end of each month, so we can make sure your financials are accurate.

Accounts Receivable / Payable

If you file your taxes on an Accrual basis instead of a Cash basis, you can provide us with these balances so we can adjust your income and expenses so they are properly reflected for tax purposes.

Still need help? Contact Us Contact Us