Initializing an established Sub-S Corp - Shareholders equity, etc

Posted by Mel_3 on July 29, 2009, 8:55 pm

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When you first setup Quick Books for an existing sub-s corp...

And you don't know the stockholders basis or equity... (single
stockholder)

1 - Can you put this in later or must you put it in initially ?
2 - Or can you put in an estimate and go back and correct it later (w/
o a journal entry?)
3 - Ditto on loans from (or to) shareholders... if you don't know all
of them when you first setup QB... can you fix this later or will all
the entries be "out of sequence" ??
4 - Ditto for cash (bank) exact balances?
5 - Or should we wait to setup Quick Books until we have all the
correct numbers?

thanks for any help.

Posted by paulthomascpa on July 30, 2009, 8:32 am

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> When you first setup Quick Books for an existing sub-s corp...

> And you don't know the stockholders basis or equity... (single

> stockholder)

> 1 - Can you put this in later or must you put it in initially ?

> 2 - Or can you put in an estimate and go back and correct it later (w/

> o a journal entry?)

> 3 - Ditto on loans from (or to) shareholders... if you don't know all

> of them when you first setup QB... can you fix this later or will all

> the entries be "out of sequence" ??

> 4 - Ditto for cash (bank) exact balances?

> 5 - Or should we wait to setup Quick Books until we have all the

> correct numbers?

QuickBooks is really kool in that you can make changes at any time. So, for
an existing company, start with the numbers from the existing financials or
tax returns. As you find additional information that changes a number, your
records will reflect that change and the notes will tell you why you did
that.

You'll probably never have the "correct" numbers, so don't wait on that or
you'll never have the company set up and running.

--
Paul Thomas, CPA
www.paulthomascpa.com

Posted by Haskel LaPort on July 30, 2009, 2:28 pm

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> When you first setup Quick Books for an existing sub-s corp...

> And you don't know the stockholders basis or equity... (single

> stockholder)

> 1 - Can you put this in later or must you put it in initially ?

> 2 - Or can you put in an estimate and go back and correct it later (w/

> o a journal entry?)

> 3 - Ditto on loans from (or to) shareholders... if you don't know all

> of them when you first setup QB... can you fix this later or will all

> the entries be "out of sequence" ??

> 4 - Ditto for cash (bank) exact balances?

> 5 - Or should we wait to setup Quick Books until we have all the

> correct numbers?

> thanks for any help.

Depends on how long of a wait. If only a short time then save yourself some
grief.