PeachTree, Large Difference Income

[geekgirldany]

I have a new client that is using Peachtree. I use QuickBooks so Peachtree is very new to me. I am hoping that some of you maybe able to help me.

This is a 1120S. Client said they were told by prior accountant that there had to be alot of journal entries inputted for adjustments. She said that the accountant did not update or give them a updated peachtree backup. Told them to start with a new company file each year.

Okay well I was looking over the prior two years. The income listed on the tax return is WAY off from that on Peachtree. It is around $80,000 off for 2006. I spoke to the client today and they are getting me 2006 bank statements. This is the only way I know to check it.

For anyone that uses Peachtree is there a way to match income received into Peatchtree to that received into the bank? What reports?

On another note there were "accural to cash" adjustments made on Schedule L and Scheule M-1 on the return. The adjustments were made to A/R, inventory, and retained earnings. States it was for year 2005 and Totals to about $10,000

I've never seen adjustments like this made on a return before.

I would really appreciate any help on this.

[Bees Knees]

I don't think Peachtree has anything to do with it. You are dealing with an idiot who doesn't understand the concept of matching things on the tax return with info recorded in the books. I see this problem with people who use Quickbooks as well.

Accounting 101: The first rule of accounting is that the info recorded in the books and records is supposed to mean something.

I also disagree and strongly object to people who insist on using accrual basis books for a cash basis tax return. Make them give you books recorded under the cash method, if that is what is used on the tax return.

[S T]

Could Be

Accural vs Cash - Check your reports

I have just found that PeachTree is not as friendly, usually runs accrual, and trying to adjust is a "lot of journal" entries.

Good Luck!

Sandy

[geekgirldany]

Thank you guys for responding.

Yeah I noticed not too friendly. Guess it depends on what you are use too. I noticed while doing some research on peachtree it appears that you can select to have it run in either cash or accural. You can not switch back to either one like you can in QuickBooks.

So in other words, Peachtree is probably running on accural instead of cash basis? Looks like it would be reverse and the reports would show more in income if it runs on accural. The tax return has cash basis checked on the second page.

The client did say that when they went with this accountant they had to pay the IRS when in previous years they had never paid. The company has been operating since 95. This accountant done their returns for two years. Not saying it is the accounant. I am sure there is some sense behind what he did.

LOL Good Luck is right

[S T]

Conversion

Dany, the only client that I acquired on Peachtree, which was Manufacturing, I did use this conversion tool to QB,

So maybe it will assist you http://quickbooks.intuit.com/product...oks/switch.jsp

The conversion tool did assist with income and expenses, did not assist on the Inventory, Production problem due to being a mnaufacturing client and assembly problems. QB is not so good at that and they will admit that.

Hope this might help

Sandy

[geekgirldany]

Thanks Sandy. I am going to try the conversion again. I keep on getting errors on every file. I only have the peachtree backups. So I have to restore to peachtree and then try to upgrade to Quickbooks. It is a large file. Might be a good time to use my ProAdvisor tech support.

[S T]

QB Pro Advisor

I had a similar problem on my mfg client from Peachtree to QB - and the QB Tech support was very willing to assist. They want to cultivate as many Client conversions as possible, in hopes that they could move the client to a QB client rather than Peachtree client.

Like I said the conversion only assisted me to gather the income and the expense info, if the client is running inventory or assembly in Peachtree, that was a "no" go. But it did give the info that we needed to compare outside of the inventory issue.

Outside of the conversion, if that doesn't work, you will might have to spend some time with Peachtree Tech support, to try to clean up You haven't stated what type of business for your T/P,

My client actually called in a PeachTree support advisor that charged something like $125 per hour, so wasn't cheap, and what I looked at "I was not comfortable at all with the figures". The client "refused" to change systems, and I just could not accommodate, so they found a new Tax Person and outside Accountant . Take note though that my client was a MFG client that did some assembly and mfg.

Sandy

[geekgirldany]

Thank you Sandy. I just tried to convert again and it gets stop at building the balances on the accounts. I will QBs a call and see if they can help. If would help me if I could view it in QBs just to get an idea of what is going on. This customer sells locks. Not inventory.... that I can tell yet.

I never knew peachtree was so different from quickbooks. I had thought they were getting more like them. Seems to still be some major differences. If I can't get this worked out they may have to go to someone else.

[S T]

Conversion

Dany,
Yes give QB a call - something about the conversion program and they were able to assist me.

If you need more, PM me and I will see what I can do to assist you.

If no inventory and you can convert to QB you should be able to see what the issue is in the accounting. It is probably a posting issue!

Sandy

[geekgirldany]

Thanks so much Sandy. I might have to take you up on that PM