cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

QB desktop, COGS & Taxes

I'm using 2020 Quickbooks Premier desktop and TurboTax 2019 to do my business taxes. My QB Balance Sheet Report does not list the Beginning of Year and End of Year Inventory values under the GOGS header, but TurboTax and the IRS require those values when calculating my Gross Profit for the year.  My inventory numbers are correct.  When I pull a EOY Inv Valuation Summary and put those numbers into TurboTax with all of the other COGS values, then my Gross Profit does not match my P/L sheet.  How is this supposed to be done for Tax purposes?  other info: I have been using QB since 2011, but it's the first time that I am doing my taxes myself.  I'm using Cash Basis accounting in QB and with the IRS.  My gross sales are under $50k per year for the last 10 years.

2 Comments
Highlighted
Community Champion

QB desktop, COGS & Taxes

RE: My QB Balance Sheet Report does not list the Beginning of Year and End of Year Inventory values under the GOGS header

 

GOGS is an expense and does not belong on your balance sheet.

 

Your inventory asset account will appear on your balance sheet.

 

To see the beginning and ending in inventory asset account balances for 2019, run the balance sheet for 12/31/2018 (which will show the beginning balance for 2019) and 12/31/2019 (the ending balance for 2019.)

Highlighted
Level 1

QB desktop, COGS & Taxes

My apologies,  the QB Profit and Loss (not Balance Sheet) shows COGS without Inventory numbers to find my Net Income for 2019.  Turbo Tax uses the beginning and ending Inventory numbers to find my Net Income for 2019.  Which one is correct? Why don't they match?

Need to get in touch?

Contact us