BOLINGBROOK, Ill., June 29, 2026 /PRNewswire/ — For business owners who rely on QuickBooks to manage their finances, tax season can be far less stressful if they know how to use the software effectively. In a HelloNation article, Karen Eberhart Metcalfe of Eberhart Accounting Services, PC in Bolingbrook, IL, highlights the most important QuickBooks reports to generate before filing taxes, ensuring accuracy, efficiency, and peace of mind during tax preparation.
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The article explains that QuickBooks is more than just a bookkeeping tool; it’s a data resource that, when used correctly, can simplify compliance and give business owners clear insight into their financial performance. The key lies in running the right QuickBooks reports before year-end, reviewing them for accuracy, and ensuring that all accounts are properly reconciled.
At the top of the list is the Profit and Loss statement, also known as the Income Statement. This essential report summarizes total revenue, costs, and business expenses over a specific period, making it the foundation for accurate tax filings. Reviewing this report allows business owners to verify that all income is recorded, deductions are properly categorized, and personal or miscellaneous entries haven’t been mistakenly included. Regular review of this statement also provides a snapshot of profitability throughout the year.
Another critical QuickBooks report is the Balance Sheet, which offers a snapshot of assets, liabilities, and owner’s equity. This report ensures that loans, credit card balances, and capital investments are properly accounted for. The article recommends checking that major purchases, such as equipment or vehicles, are recorded as assets rather than expenses. An accurate Balance Sheet reflects the true financial health of a business and supports both short-term planning and year-end tax preparation.
The General Ledger report provides a detailed look at every transaction entered during the year. Reviewing this report helps identify duplicate entries, misclassified expenses, or missing descriptions. Because it supports every number that appears on a tax return, accountants often rely on the General Ledger as a reference during tax preparation. Clean, organized ledger data means fewer questions and faster processing at filing time.
The Expenses by Vendor report is another valuable QuickBooks feature that helps confirm payment accuracy and supports 1099 reporting. By listing total amounts paid to each contractor or supplier, it helps business owners identify which vendors meet IRS reporting thresholds. It also highlights recurring costs or subscriptions that may qualify as deductible business expenses. Regularly reviewing this report ensures that vendor payments are complete, accurate, and properly documented.
For small businesses and self-employed professionals, mileage tracking can significantly impact deductions. Running a Mileage report through QuickBooks helps summarize total business miles driven for the year, ensuring accurate calculations for vehicle-related deductions. Even if mileage is tracked outside of QuickBooks, keeping a detailed log helps capture valuable tax savings and supports claims in case of an audit.
The article emphasizes that running these QuickBooks reports isn’t just about tax preparation; it’s about understanding how a business operates financially. Regularly reviewing the Profit and Loss statement and Balance Sheet throughout the year provides insights into cash flow, growth, and spending trends, allowing for better decision-making.
Before sending reports to an accountant, it’s essential to confirm that all bank and credit card accounts are fully reconciled. Reconciliation ensures that every transaction matches your actual bank records, eliminating discrepancies that could delay filing or cause inaccuracies. Business owners should also verify that invoices, bills, and deposits reflect true year-end status.
Proper categorization plays a crucial role in preparing QuickBooks reports for tax time. Custom expense categories should align with IRS definitions to avoid misclassification errors. Cleaning up the chart of accounts and reviewing all expense categories ensures compliance and makes tax preparation more efficient.
Finally, the article advises business owners to back up data and archive reports at the end of each tax year. Saving copies of key QuickBooks reports, such as the Profit and Loss statement, Balance Sheet, and General Ledger, provides an organized record in case documentation is ever needed for future reference or IRS inquiries.
When used to its full potential, QuickBooks becomes more than just accounting software; it becomes a roadmap for smart financial management. Running and reviewing these key reports before filing allows business owners to approach tax season confidently, knowing their numbers are accurate, complete, and well-documented.
The article, QuickBooks Reports You Need Before Filing, features insights from Karen Eberhart Metcalfe, Accounting Expert of Bolingbrook, IL, in HelloNation.
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SOURCE HelloNation
