12 Must-Have QuickBooks Reports That Can Simplify Your Tax Filing Process 

Did you know that QuickBooks has your back when it comes to simplifying your tax filing process? Well, it does, and it’s a game-changer.

QuickBooks, versatile accounting software, is equipped with powerful tax preparation reports that can help you if you prefer to manage your tax obligations independently. It allows you to create tax reports like Profit and Loss, Expenses, and Sales Tax. These reports are useful for small business owners, entrepreneurs, and startups when filing accurate tax returns without needing separate tax preparation software.

The best part is that you can export these QuickBooks reports for taxes in the form of Excel or PDF and can share these files with your accountant or tax professionals. These reports can help your tax preparer identify correct details for accurate tax filing.

In this blog, you can explore 10 must-have QuickBooks Desktop tax reports that can streamline your tax preparation and filing process and get detailed steps for generating tax reports. So, get ready to take action on tax reports in your QuickBooks Desktop!

Also Read: 15 Types of QuickBooks Enterprise Reports Your Business Should Look At

QuickBooks Desktop Version for Tax Filing

In QuickBooks Desktop Payroll Enhanced, you can pay and file your 941/944, 940 taxes and federal payroll forms electronically. This streamlined process ensures compliance with the IRS and simplifies tax management for small businesses.

QuickBooks Desktop offers several reports you can share with your accountant or tax professional to help them prepare your taxes quickly and accurately. Tax professionals can import these reports into software such as UltraTax, Drake, etc., to perform complex tax calculations.

If your organization requires tax preparation and filing for complex returns, QuickBooks might not be the best tool; you should consider using tax software instead!

How QuickBooks Can Help in Tax Preparation and Filing Process

QuickBooks Desktop can help accountants and tax professionals in following key areas of tax preparation:

Area	Description
Income Tracking	Records all revenue streams and generates income reports.
Expense Management	Tracks business expenses and categorizes them for tax deductions.
Profit and Loss Statements	Summarizes income and expenses, providing an overview of net profit or loss.
Balance Sheets	Displays financial position, listing assets, liabilities, and equity.
Tax Reports	Generates detailed tax reports, helping identify deductible expenses and taxable income.
Exporting Data	Allows exporting financial data for sharing with accountants or importing into tax software.
Integration with Tax Software	Syncs with popular tax applications, streamlining the tax preparation process.
Audit Trails	Maintains detailed records of transactions, providing necessary documentation for audits.

10 Essential QuickBooks Reports You Need for Filing Taxes

Below are the ten QuickBooks reports that can provide valuable insights into your business finances and help you identify potential tax deductions.

QuickBooks offers a suite of Company and Financial Reports that are invaluable during tax season. These reports track the company’s financial position, which could be very helpful.

Here are the critical tax reports in QuickBooks Desktop:

Profit and Loss Report

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The Profit and Loss Report in QuickBooks Desktop gives you an overall summary of your company’s income and expenses for a specific period.

This report allows you to quickly view all the income sources and expense transactions, such as invoices, bills, sales receipts, etc.

In simpler terms, Profit and Loss reports provide a snapshot of your business’s financial performance over a specified time frame.

These reports come in three variations: Standard, Detail, and Year-to-Date.

• Standard Profit and Loss Report: Provides a summary of the company’s profitability during a specified period to simplify tax preparation
• Profit and Loss Detail Report: Lists all transactions over the selected period, helping you discern expenses and revenues.
• Profit and Loss Year-to-Date Report: This allows you to easily compare your current income and expenses with the previous year’s data during the same time frame.

How to generate Profit and Loss report in QuickBooks

• Step 1: Launch the QuickBooks Desktop program in your system and open the company file for which you want the Profit and Loss report.
• Step 2: Now, go to the Reports menu option and click Reports Center from the options.
• Step 3: In the Reports Center, select Standard Reports and use the search box to find the Company & Financial section. After that, click Profit and Loss Standard to open the report.
• Step 4: Click the Customize report button at the top to modify the date range, columns, header/footer, and other report options. Click OK to apply your customizations.
• Step 5: The report will now display your income and expenses report for the selected date range. If you need other changes, you can customize the report again.
• Step 6: You can export this Income and Expense report as an Excel or PDF file. For this, simply click on the Excel or PDF button at the top.

Income and Expenses Report

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An Income and Expenses Report in QuickBooks Desktop is a financial statement that summarizes a business’s revenues and expenditures over a specified period. This report provides insights into the company’s profitability by detailing income sources and categorizing expenses.

These reports are classified into:

• Income by Customer and Vendor Summary: Helps to monitor the gross profit and total expenditure from each customer and vendor, respectively, for an efficient tax filing experience.
• Detailed Income and Expenses Report: Tracks the transactions for each customer or vendor, which will give you the largest source of income and expense at once.

Steps to Create Income and Expenses Report

• Step 1: Launch QuickBooks Desktop and open your company file.
• Step 2: From the top menu, select Reports and choose to open a report based on your requirements:
  • Profit & Loss: To see both income and expenses.
  • Expenses By Vendor Detail: If you want to see transactional details.
  • Expenses By Vendor Summary: To see an overview of expenses by different vendors

QuickBooks Sales Report

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Sales processes and invoices play a significant role in the tax filing process. The QuickBooks Sales Reports provide detailed insights into your sales invoices, including sales by customers and representatives.

Sales by Customer and Sales by Vendor Reports: You can run the Sales by Customer and Sales by Vendors Reports to review the sales tax payable generated during the fiscal year, as QuickBooks keeps an accurate track of the products purchased or sold. This helps you monitor, calculate, and remit the due sales tax.

Steps to Create QuickBooks Sales Report

• Step 1: Launch QuickBooks Desktop and open your QBDT file.
• Step 2: From the top menu, select Sales under Reports to see available sales report options.
• Step 3: Choose a report based on your requirements and customize it.
• Step 4: Now, run the report to get the results.

QuickBooks Vendors and Payables Reports

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With QuickBooks Vendors and Payables Reports, you can quickly see an overview of pending payments and payments made to several vendors. It helps to maintain financial accountability and transparency in business operations.

The reports in this category are as follows:

• Sales Tax Liability: This shows the total sales tax balance that your firm owes. It includes the total taxable/non-taxable sales, tax rate, collected tax, and sales tax payable.
• Sales Tax Revenue: Summarizes the sales tax you have paid from the taxable sales during the selected time frame.
• Sales Summary: This consists of a summary of the tax amount that was charged to each customer along with the customer name, location, TIN No., taxable amount, and more.

How to Create QuickBooks Vendors and Payables Report in QuickBooks Desktop

• Step 1: Run QuickBooks Desktop in your system and choose the company file.
• Step 2: Now, from the Reports menu, choose Vendor & Payables > Vendor Payment Summary.
• Step 3: Select the date range for the report and customize it as per your requirements.
• Step 4: After customizing the report, click Run Report to get the QuickBooks vendors and payable reports.

QuickBooks Employee and Payroll Report

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QuickBooks Employee and Payroll Reports are crucial for verifying and tracking expenses for human resources and payroll employees. You can use this report to gather the company’s tax filings, cross-check financial data, employee leaves and vacations, payroll details, and more.

When it comes to Employee and Payroll reports, there are several divisions, including:

• Payroll Tax Liability: It comprises all the payroll taxes withheld, due, and paid for individual company employees. Simply, it summarizes everything already paid for and what needs to be paid for all employees.
• Payroll Tax Payment: You can see all the payroll tax payments for the selected period to help you file your taxes.
• Payroll Tax and Wage Summary: This shows your employee’s taxable wages and the withheld taxes from those wages.
• Workers Compensation: A type of accident insurance paid by employers without making payroll deductions from the employees’ salaries, showing the compensation rate to be paid to every eligible employee.
• Total Payroll Cost: Calculates all year-to-date costs associated with your employees’ payments, including total, net, gross pay and taxes.
• Retirement Plan: Displays the company’s and employees’ total calculations toward their retirement plan.

How to Create QuickBooks Employee and Payroll Report

• Step 1: First, open QuickBooks Desktop and then choose the appropriate company file.
• Step 2: From the top main menu, select Reports > Employees and Payroll
• Step 3: Now, choose Payroll Summary
• Step 4: Select the date range for which you want to generate the report
• Step 5: Choose Total Only from the Show Columns dropdown.

Recommended Reading: How to Manage Payroll for Your Small Business?

QuickBooks Budgets and Forecasts Report

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QuickBooks’ Budget Reports display budgeted revenues and expenses for the specified fiscal year.

QuickBooks budgets and forecasting reports help you make intelligent business decisions by reviewing the prior year’s fiscal report data and setting up budgets and forecasts for the coming year for efficient tax filing.

Here are the report variations to assist you with your taxes.

• Budget vs. Actual Report: Provides a side-by-side comparison of planned, budgeted figures and actual financial results for a specific period, offering a clear snapshot of a company’s financial performance.
• Forecasts Overview Report: Analyzes the alignment between actual revenues and expenses with the budgeted figures and helps compare them to projected amounts, enhancing the tax filing process.

How to Run Budgets and Forecasts Report in QuickBooks Desktop

Step 1: Reviewing previous year’s data

Before creating the Budget and Forecasts report, you must correctly set the fiscal year. Here’s how you can do it.

• From the main menu, select Company > My Company
• Click the pencil icon and choose Report Information
• Select the correct first month of the fiscal year

Now, review last year’s financial reports using these steps:

• From the menu, select Reports and hover over Company & Financial.
• Now, select Profit & Loss Detail or Balance Sheet Detail as per your reporting requirements
• Choose the Last Fiscal Year from the Dates dropdown and click the Refresh button.

Step 2: Creating a budget for the new fiscal year

Now, you have reports to create a budget or forecast report in QuickBooks Desktop.

• From the Company menu, select Planning & Budgeting > Set Up Budgets.
• Now, choose the Create New Budget option
• Set fiscal year and choose Profit Loss and Balance Sheet. After that, click Next.
• If you have selected Profit and Loss, choose either Create budget from scratch or Create budget from the previous year’s actual data.
• Lastly, click on Finish.

Step 3: Setting up a forecast report

If you are using QuickBooks Enterprise, Accountant, or Desktop Premier, you can also create forecast reports to predict future cash flow and revenue.

• Navigate to the Company menu and hover over Planning & Budgeting.
• Choose Set Up Forecast > Create New Forecast.
• Specify the fiscal year for the forecast.
• Opt for either Create a forecast from scratch or Create a forecast from the previous year’s actual data.
• Click Finish.

QuickBooks Sales Tax Liability Report

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With the Sales Tax Liability report, you can quickly view an overview of the sales tax payable by your company. You can also view total taxable and non-taxable sales data, the overall tax rate, and the total collected sales tax.

Here are two of its variations:

• Service Tax Abatement Report: Provides a list of all the transactions on which reduction is calculated in exact percentage and amount.
• Service Tax Reverse Charge: Shows all the transactions for which reverse charge is calculated in service tax.

How to Generate Sales Tax Liability Report in QuickBooks Desktop

• Step 1: Open the QuickBooks Desktop program, and from the Reports menu, select Vendors & Payables > Sales Tax Liability.
• Step 2: Now, open the Sales Tax Revenue QuickZoom report by double-clicking the Total for Total Sales column.
• Step 3: Choose the Customize option on the top and select the correct report basis: Accrual or Cash.
• Step 4: Switch to the Display tab and choose a date range for the report.
• Step 5: From the Filters tab, choose Accounts, and from the drop-down menu, select All ordinary income accounts.
• Step 6: Stay on the Filters tab and select Transaction Type > Multiple Transaction Types from the drop-down menu.
• Step 7: Now, a dialog box will appear on your screen. Here, you must select the check mark next to all transaction types, excluding Invoice and Sale receipts. Once done, click the OK button to return to the Filters tab.
• Step 8: Finally, click the OK button to return to the report.

Bank Reconciliation Report

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Bank Reconciliation Reports help you ensure that your financial records match your bank statements. QuickBooks provides a concise overview of your bank reconciliation process, giving you access to a summary of matched and unmatched transactions.

In the Bank reconciliation category, there are variations such as:

• Bank Reconciliation Summary Report: Gives an overview of reconciling a bank account, including starting and ending balances, cleared and uncleared transactions, and any inconsistencies between bank statements and QuickBooks records.
• Bank Reconciliation Detail Report: Offers a more detailed breakdown of the reconciliation process by categorizing every transaction as cleared or uncleared.
• Bank Reconciliation Discrepancy Report: Highlights transactions that are causing discrepancies during the reconciliation process, making it easier to investigate and correct errors.
• Deposit Detail Report: Lists all deposits made during the reconciliation period, including details like the source of the deposit and the amount. It helps ensure that all deposits have been properly recorded.

How to Generate Bank Reconciliation Reports in QuickBooks

• Step 1: Navigate to Reports: Go to the Reports menu and select Banking > Previous Reconciliation.
• Step 2: Select Account and Reconciliation Period: From the Account drop-down menu, choose the account you reconciled with. In the “Statement Ending Date” section, select the reconciliation period you want to review.
• Step 3: Choose Report Type: Select either Detailed or Both for the report type. If you are fixing a reconciliation, then select Detailed.
• Step 4: View Transactions: Choose to view transactions type you want to include in the report:
  • Transactions cleared at the time of reconciliation: Shows a snapshot of transactions during reconciliation.
  • Transactions cleared plus any changes made: Displays transactions during reconciliation and their status in your accounts.
• Step 5: Run the Report: Click Display when you are ready to generate the bank reconciliation report.
• Step 6: Review and Customize: Now, review the report for any discrepancies. You can customize the report further to look at specific details. If everything is fine, you can also export the report as an Excel or PDF file.

Accounts Receivable Aging Report

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The Accounts Receivable Aging Report allows you to manage outstanding customer payments effectively. This report helps maintain a healthy cash flow and plays a significant role in accurately assessing tax liabilities.

Within the Accounts Receivable Aging Report category, you can choose from classifications like Basic, Detailed, and Standard for tracking outstanding customer payments.”

• Basic Accounts Receivable Aging Report: It categorizes outstanding customer payments based on the aging of the invoices. It typically divides unpaid invoices into aging buckets, such as current, 30 days overdue, 60 days overdue, and 90+ days overdue, to offer insights into the aging of your receivables.
• Detailed Customer Receivables Report: Provides a more comprehensive view of outstanding payments, focusing on individual customers by listing customer-specific outstanding invoices.
• Standard Accounts Receivable Aging Report: Tracks outstanding customer payments, providing a detailed breakdown of unpaid invoices, including aging categories, specific invoice details, cash flow management insights, and considerations for tax planning.

How to Generate Accounts Receivable Aging Report in QuickBooks Desktop

• Step 1: Launch QuickBooks Desktop and open your company file.
• Step 2: Now, from the Reports menu at the top, select Customer & Receivables > A/R Aging Detail.
• Step 3: Use the Dates dropdown to specify the date range for the report.
• Step 4: Customize the report to look for specific details.

Accounts Payable Aging Report

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Much like its accounts receivable counterpart, the Accounts Payable Aging Report is indispensable for businesses to track and manage unpaid bills effectively.

Let’s explore its various types.

• Basic Accounts Payable Aging Report: Divides outstanding bills into aging buckets, such as current, 30 days overdue, 60 days overdue, and 90+ days overdue, providing insights into your payables aging.
• Vendor-Specific Payables Report: Lists unpaid bills by vendor, helping you prioritize payments and maintain strong vendor relationships.
• Accounts Payable Aging Report: Offers a detailed breakdown of outstanding bills, including aging categories, specific bill details, expense control benefits, and considerations for optimizing tax deductions.

How to Run Accounts Payable Aging Report in QuickBooks Desktop

• Step 1: Open your QBDT file.
• Step 2: From the Reports menu on the top, select Vendors and Payables > A/P Aging Detail.
• Step 3: Now, switch to the Customize Report tab, and in the Dates field, choose Custom to specify the duration of your report.
• Step 4: Click OK to view the A/P Aging report. You can save it as an Excel or PDF file in your system.

How to Access Tax Reports in QuickBooks?

Before delving into the specific reports you’ll need, let’s elucidate how you can effortlessly access tax reports within QuickBooks:

• Log in to QuickBooks: Start by logging into your QuickBooks account.

• Navigate to the Reports Tab: Once logged in, go to the Reports tab located on the left-hand menu.

• Select the Desired Report: Browse through the list of reports to find the one you need for your tax preparation.
• Customize the report (if necessary): You can often customize the report by selecting the date range, specific categories, or other relevant options. This customization ensures that the report provides precisely the data you need.

• Generate the Report: Click the “Generate” or “Run Report” button after customizing. You can save the report for future reference or share it with your tax professional.

Tax Cost Report for PPP Loan Forgiveness

The Tax Cost report for PPP Loan Forgiveness shows employer state and local taxes on compensation from your QuickBooks payroll account based on the selected period. Review the report before using the data for your PPP loan forgiveness application to ensure it includes only eligible tax costs. Certain taxes may not qualify for forgiveness.

The report covers:

• Total Employer Taxes
• Tax Payments within the Covered Period
• Taxes Incurred during the Covered Period
• Prorated Taxes Incurred during the Covered Period

Ensure you select a period consistent with SBA guidelines for eligible payroll costs. Only state and local taxes paid within the Loan Forgiveness Covered Period (LFCP) or incurred in the last pay period of the LFCP may qualify for forgiveness. Refer to the latest SBA and Treasury guidance for specific eligibility details. See a list of – Employer Assessed Taxes.

1099 Reports

The 1099 report in QuickBooks relates directly to tax reporting because it helps businesses comply with IRS requirements for reporting payments made to independent contractors, freelancers, or other non-employee service providers. These payments are typically subject to taxation, and the 1099 form ensures that the IRS is aware of the income these contractors receive, which they must report on their tax returns.

Discover how to generate 1099 reports in QuickBooks to identify contractors who require 1099 forms, review payment totals, and more. Here’s how to run these reports in QuickBooks Desktop to track which contractors need 1099s.

QuickBooks Desktop offers two key reports to help you review your 1099 information:

• 1099 Summary: Displays the total amounts for each 1099 box and allows you to filter by 1099 vendors, accounts, or thresholds.
• 1099 Detail: Provides a detailed breakdown of each payment made to vendors, with additional filters for 1099 vendors and accounts.

How To Access 1099 Reports?

• Go to Reports (QuickBooks Online Login: Sign in to Access Your QuickBooks Account).
• Select Vendors & Payables.
• Choose either 1099 Summary or 1099 Detail.

Note: The reports default to the “Last Calendar Year” date range. Be sure to adjust the date range next to “Dates” at the top of the report to ensure it’s set correctly. These reports will show which contractors are eligible for 1099s. If contractors are missing or payment amounts are incorrect, refer to Fix missing contractors or wrong amounts on 1099s.

Ready to File Your Taxes?

Helping clients with tax compliance requires both expertise and the right resources. QuickBooks Reports are an essential tool in this process. They turn data into actionable insights, making tax filings a requirement and an opportunity for financial optimization.

QuickBooks equips you with the means to seamlessly track income, expenses, sales, and payroll while also facilitating the anticipation of future business revenue.

With QuickBooks reporting, you can put all your company data to use. One of the significant benefits of reporting is that you can export all the data relatively easily into Excel or any other spreadsheet.

Furthermore, it empowers you to monitor outstanding customer payments and unpaid bills vigilantly, facilitating optimized cash flow management and deductions for your clients.

QuickBooks can help you track all your data for tax filing processes. Moreover, you can customize these reports or create them at your convenience to meet your business requirements.

Our solutions consultants are ready to assist you with further inquiries or guidance. Contact us at +1-855-223-4887 or chat with our consultants. Much like its accounts receivable counterpart, the Accounts Payable Aging Report is indispensable for businesses to track and manage unpaid bills effectively.

QuickBooks Reports – Frequently Asked Questions