If you want to file your taxes on your own, then you must be aware of the documents, files, and reports that are required to file taxes. There are many files and reports that are required for filing taxes. If you use QuickBooks as your accounting software, then you can take help from the Accountant and can make a list of tax reports. This will help you to find the accounting and financial activity throughout the year.
Today, In this article we will guide you to know about all the QuickBooks reports that are required to file taxes. We will recommend you read the entire article, this will make sure that you get a complete idea about the QuickBooks reports that are needed to file taxes.
Table of Contents
QuickBooks Reports that are required for filing taxes
Let us have a look at the list of QuickBooks reports that are required for filing taxes
1. QuickBooks Company files and Financial reports
You can track the financial condition of your company using QuickBooks financial reports and company files. It will help you to file taxes more easily. It has 2 types of reports namely Profit and Loss reports and Income and Expenses reports.
Profit and Loss reports:
You can use the QuickBooks profit and loss report to get a complete picture of the profits and losses earned by your company in a certain period of time. It will be very much helpful for you at the time of taxation. The Profit and Loss report also helps you to get a complete overview of the revenues of your company and will also help you to know how much money your business was able to make at a certain period of time. The Profit and loss report will help you to compare the income and expenses of the present year to the income and expenses of the previous year during the same period of time.
Income and Expenses reports:
You can use the QuickBooks Income and Expenses reports to get a complete picture of the total income and expenses or profit and loss earned by your company. You will be able to get an overview of the incomes of your customers and vendors. It will also help you to track the total profit and expenses of each customer and vendor. It will be very much helpful for you at the time of taxation. You can also use detailed reports of income and expenses to view each and every transaction of your customers and vendors.
2. Sales Reports of QuickBooks
The Sales and Bills of your business in QuickBooks accounting software play a vital role in filing your taxes. You will be able to get a complete overview of the invoices, sales by your customers, and sales by your representatives with the help of QuickBooks Sales reports. QuickBooks always keeps records of items sold and purchased and thus you can use the Sales by customers and Sales by vendors report to get an overview of the sales tax that has to be paid this year. You can also remit and calculate the due sales tax with the help of a QuickBooks sales report.
3. Payables and Vendors reports in QuickBooks
QuickBooks vendors and payables reports help you to get an overview of the sales taxes collected during a certain period of time and the amount of sales tax that needs to be paid to your tax agency.
Sales Tax Liability:
A sales Tax liability report helps you to know the amount of sales tax your company has to pay to your tax agency. It will also help you to know the amount of sales tax that is collected during a certain period of time.
Sales Tax Revenue:
A sales tax revenue report gives you an overview of the sales tax which is paid from the taxable sales by you during a certain period of time.
Sales Summary:
The sales summary report gives you information about the amount of sales tax that was charged to each customer and also gives you the details of your customer such as the Customer’s name, Customer address, and TIN No. etc.
4. Employee and Payroll in QuickBooks
You can use these reports to verify and track the expenses of your company. These reports will help you to collect the tax filings of your company and will also help you to get the details regarding financial data, employee leaves, and payroll. Let us have a look at the reports that will help you to file tax forms and also help you to manage your employee and their wages
Payroll Tax Liability:
The payroll tax liability report will help you to get the details about the sales tax paid for individual company employees and the due sales tax that needs to be paid for individual company employees.
Payroll Tax and Payroll Wages reports:
These reports give information about the employee’s taxable wages and the amount of tax that needs to be paid for that particular wage. It also gives you information about “Subject to state”, “Subject to local”, and “Federal withholding”.
Payroll Tax Payment:
These reports will give you information about all the payroll tax payments for a particular period of time which will help you to file your tax more efficiently.
Workers Compensation:
It is accident insurance paid for by the employees. No Payroll deduction is made from the employee’s salary. It gives you information about the compensation rate that needs to be paid to every eligible employee of your company.
The total cost of the Payroll
The total Payroll cost report calculates the costs related to the payments of your employees. It calculates the total pay and taxes.
Retirement Plan report:
The retirement plan report gives information about the calculation made by the employees and company regarding their retirement plan.
5. Forecasts and Budgets in QuickBooks
A tool named QuickBooks budgets and forecasts helps you to make smart business decisions. It reviews the reports and details of previous years and helps you to set up budgets and forecasts for the future. This will help you to compare the budgets of your company and will help you to know whether your company is over budget or under budget. It will also compare the company’s performance on the basis of the Profit and loss budget.
The Forecast overview report will help you know about the future business revenues and cash flow. You can compare the actual revenue and expenses which will help you to file your taxes efficiently.
6. Service Tax reports in QuickBooks
The user has to pay a certain amount of service tax in most of the transactions and thus QuickBooks accounting software helps you to record the service tax reports. Now let us have a look at some of the service tax reports in QuickBooks
Service Tax Abatement Report
This report gives you a list of transactions on which abatement is being calculated. It gives you the exact calculated amount and percentage.
Service Tax Reverse Charge
This report gives you the list of transactions for which reverse charge is being calculated. It gives you the taxable amount and percentage of that amount.
7. Form 1098 for mortgage interest and property taxes
In the event that you utilize a portion of your primary or secondary residence for business, you must determine which area is used for business and which is for personal habitation. Consider it like this: if your home office space makes up 15% of your total living area, you can deduct 85% of your mortgage interest as usual and the other 15% as business expenditure.
In this case, it’s likely that your mortgage company sent you an IRS Form 1098 at the end of the year that details your annual payments for property taxes and mortgage interest.
This form will be used by your accountant to calculate your home office deduction and to claim the mortgage interest deduction that all homeowners are entitled to. Provide Form 1098 for each mortgage you have if you have multiple mortgages.
Final Words
We hope that now you are completely aware of which reports are essential for filing your taxes. QuickBooks report will help you to gather all the details of your company easily so that you can file your taxes efficiently. We will recommend you read the entire article carefully without skipping a single topic to know about the reports which are required during taxation. If you want to get more information regarding this topic then you can take help from our CPA for reliable info.