S Corp Business The month closes before a draft.
An open month is still moving. A draft of it will move too.
Match the statement first.
The close starts with the statement, not with a story about how the month felt. Every line on the statement needs a name in the books. Customer receipts, vendor bills, the paycheck, the draw, and money the owner put in.
Unnamed lines are the work. We do not park them in a bucket called ask later and then draft a return on top. Ask later is how a month stays open while everyone pretends it is finished.
Agreement between the statement and the books is what lets the month rest. Sitting still is the point. A return needs months that do not change under it.
Pull personal spending out.
Personal costs that rode in on the company card come out of the expense pile and onto the draw. Leaving them in supplies makes the profit look smaller and the draw look smaller, which is two errors agreeing with each other.
The same pass catches a company cost the owner paid personally. That one becomes money put in, plus the expense the company really had. Both directions get named. Neither is optional.
This pass is ordinary. It is not a confession and it is not an audit. It is how a month becomes true enough to keep.
Only then a draft.
After the close, a draft of the return has something to stand on. Before the close, a draft is a guess we would have to apologize for. We would rather delay the draft than deliver a moving one.
If you are up against a filing day, say so. We can close the months you have and be honest about the ones you do not. We will not decorate an open month so the day looks met.
The form asks which movement you are naming because that is often the line that held the month open. A single unnamed transfer can be the whole reason the statement does not match.
Send the closed month.
Tell us whether the latest statement is matched.
You will be talking to the Steven Palmieri practice.