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Level 2

How can I correct error after closing the year and taxes filed?

Good afternoon, 

 

I am hoping someone can help me. I have entered a loan payment in 2019 ( it was automatically set up) for a property mortgage. The property was transferred, and this last payment was never made, but I did not notice when doing the last bank reconciliation that it was still sitting there, and it remained as uncleared check in the register.  Hence, when I ran the year end report for the CPA to do the taxes, this outstanding check reduced the cash on hand balance on the balance sheet I gave him. He prepared the taxes, and I noticed the error months later, way into 2020. I just deleted the erroneous payment from the register so that is well, but now my book balance does not match the book balance that was on the taxes. But now  the balance is off by the 1900 ( monthly payment..) The payment was not booked as an expense or anything but the balance sheet on taxes does not match the books. The building was transferred  in 2019 from an SCorp to another SCorp ( same owner) with no money exchanging hands so there was a loss and the transfer shows as distribution to owner.  How can I correct this difference, I imagine it would be a journal entry.. so I can start the 2020 year without the error?  Thank you so much for your help.

 

Gina

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