Tax & Adjusting Entry Year-End Accounting Excel Worksheet

Build Excel worksheet for adjusting adjusting & tax entries, reconciling net income calculated on a book and tax basis

What you'll learn

• How to build an adjusting and tax worksheet from scratch in Excel
• What the benefits of an adjusting and tax worksheet are
• How to enter adjusting entries into an adjusting and tax Excel worksheet
• How to enter tax entries into an adjusting and tax Excel worksheet
• How to reconcile book net income and tax net income using an Excel worksheet

Requirements

Should understand debits & credits and have some experience with Excel

Description

Create a new Excel worksheet from scratch to be used in the adjusting and tax entry process.

This course is most beneficial to tax preparers and public accountants who enter adjusting entries but is also useful to anybody in accounting. Similar Excel worksheets to the ones we will construct can be useful for analyzing many areas of accounting, and the Excel skills learned in creating them are also very applicable both inside accounting and outside of it.

We will discuss the reasons for creating an adjusting and tax entries Excel worksheet. Some benefits of the Excel worksheet include the ability to enter adjusting entries in an efficient way and build an adjusted trial balance, the ability to enter tax entries efficiently and build a trial balance on a tax basis, and the ability to reconcile book net income and tax net income.

An Excel worksheet can be used to show the difference between net income on the unadjusted trial balance, the adjusted trial balance, and tax trial balance in an easy visual way. A worksheet can be used as a reference to communicate to supervisors, clients, and as a reference for us to look back at in the future.

The course will build an Excel worksheet from scratch providing tools to help with the construction for each step along the way. We will provide an updated Excel worksheet for most steps, allowing us to jump forward or to rework any part of the course without starting over. The Excel worksheets will generally have at least two tabs, one with the completed step, showing the end product, and one that has been completed up to the current step in the process, allowing us to fill it in with the help of the instructional video and the Excel tab showing the completed work.

We will then practice entering some adjusting entries and tax entries into the worksheet. As we add adjusting and tax entries to the Excel worksheet, we will better understand how the worksheet is formatted and how best to use it. We will see how net income is calculated on a book basis, on a tax basis, and how the worksheet will show the reconciliation of the two.

This course is not designed to give tax advice but to show how to construct an Excel worksheet to track adjustments.

The course will also discuss some alternative formats for building an adjusting entry and tax entry worksheet that can be found in practice. We will discuss the pros and cons of the different formats.

We will also discuss how to format an adjusting and tax entry worksheet made in the prior year so that we can enter the current year trial balance and data into it.

In addition to the instructional videos, this course will include downloadable  

•    QuickBooks Pro Desktop 2019 Backup files

•    Excel practice files

Introduction

In the realm of accounting, a deep understanding of debits and credits, coupled with proficiency in using Excel, forms the cornerstone of effective financial management. This comprehensive course aims to equip tax preparers, public accountants, and individuals in the accounting domain with the skills to create an Excel worksheet tailored for the adjusting and tax entry process. While the primary beneficiaries are tax preparers and public accountants dealing with adjusting entries, the course's applicability extends across the broader accounting spectrum. The Excel worksheets constructed through this course not only facilitate efficient handling of adjusting and tax entries but also serve as valuable tools for analyzing diverse accounting aspects. The acquired Excel skills transcend the boundaries of accounting, finding relevance in various professional domains.

Understanding the Purpose

This course delves into the rationale behind crafting an Excel worksheet dedicated to adjusting and tax entries. The advantages of utilizing such a worksheet are multifaceted. Firstly, it enables the seamless input of adjusting entries, expediting the creation of an adjusted trial balance. Secondly, the course empowers learners to efficiently input tax entries and construct a trial balance based on tax regulations. Additionally, this course navigates the process of reconciling book net income with tax net income—a crucial skill in the world of accounting. The Excel worksheet serves as a visual representation, vividly highlighting the disparities among net income figures across the unadjusted trial balance, adjusted trial balance, and tax trial balance. Furthermore, this worksheet proves invaluable as a communication tool for conveying information to supervisors and clients. It also serves as a future reference point, aiding retrospection and learning.

Building the Excel Worksheet from Scratch

The crux of this course revolves around constructing an Excel worksheet from the ground up. Each step in the creation process is meticulously addressed, with comprehensive tools provided to facilitate seamless progress. The course employs a pragmatic approach by supplying updated Excel worksheets at various stages, allowing learners to navigate ahead or revise specific sections without restarting the entire course. These Excel worksheets typically encompass at least two tabs: one exhibiting the completed outcome of a step and another that is progressively populated up to the ongoing step. This dual-tab structure capitalizes on instructional videos and the accompanying Excel tab with completed work to guide learners effectively.

Practical Implementation and Insight

Engaging in hands-on practice is paramount in grasping the nuances of entering adjusting and tax entries into the Excel worksheet. As learners populate the worksheet with these entries, they garner a profound understanding of its formatting and optimal utilization. The practical exercise offers insight into the calculation of net income based on both book and tax perspectives, elucidating the worksheet's role in reconciling the two figures. Importantly, it is worth emphasizing that this course does not provide tax advice; its focus is squarely on equipping learners with the expertise to construct an Excel worksheet that tracks adjustments—a skill essential in the accounting realm.

Exploring Diverse Approaches

Beyond the foundational content, this course delves into alternative formats for constructing adjusting entry and tax entry worksheets, as prevalent in practical scenarios. A balanced discussion of the pros and cons of these diverse formats equips learners with a comprehensive perspective, enabling them to make informed choices based on context and requirements. Furthermore, the course navigates the formatting of an adjusting and tax entry worksheet created in the prior year to facilitate the input of the current year's trial balance and data—a seamless transition that underscores the worksheet's practicality and adaptability.

Supplementary Resources

In addition to the instructive videos, the course enriches the learning experience with valuable supplementary resources:

QuickBooks Pro Desktop 2019 Backup Files: These files provide learners with real-world data scenarios, enabling them to practice and enhance their understanding within a familiar software environment.

Excel Practice Files: Excel is at the heart of this course, and the practice files offer learners ample opportunities to hone their skills, experiment with different scenarios, and solidify their grasp on constructing and utilizing the Excel worksheet.

Target Audience

This course serves as an indispensable resource for a wide spectrum of accounting professionals:

Tax Professionals: Individuals engaged in tax-related activities, seeking to harmonize book net income and tax net income, will find this course invaluable. The reconciliation skills gained are essential in navigating complex tax landscapes.

Public Accountants: For public accountants, the world of adjusting entries is an integral component of their responsibilities. This course equips them with the tools and knowledge to excel in their roles.

Accounting Practitioners: Regardless of the specific accounting role, anyone seeking a robust understanding of constructing practical worksheets for accounting transactions will benefit significantly.

Who this course is for:

Tax professionals who want to reconcile book net income and tax net income

Public accountants who work with adjusting entries

Any accountant who wants to learn how to set up a practical worksheet to work through accounting transactions

Any accountant who wants practical practice formatting Excel Worksheets