Context

The Balance Sheet Rebuild service applies to specific types of S Corp members joining Collective. You'll find out below how determine if this applies to you.

Collective's bookkeeping, accounting, payroll, and tax services all depend, to a certain extent, on the accuracy of the opening balances of your balance sheet accounts for the first year Collective is doing your books.

Your ability to provide additional documents and information, that are accurate, is vital to your future success at Collective. If they are inaccurate, or you have trouble finding them, or the books are very complex, your time in Onboarding can increase.

We use the documents and information to execute some fancy accounting and build your Balance Sheet with accurate opening balances. This Balance Sheet is the foundation for the First Financials you'll receive at the end of Onboarding.

When Are Balance Sheet Rebuilds Required

If all of the following apply, the Balance Sheet Rebuild Service is for you:

1. You joined Collective with an S Corp

2. That S Corp has a previously filed, or soon to be filed, 1120-S

3. Collective is not filing your S Corp's very first 1120-S

4. Collective is not taking over S Corp's pre-existing books

The Balance Sheet Rebuild Process

1. Member Uploads the Required Documents

Upload these documents as soon as you can.

You may need to contact your prior tax preparer or do a little extra working tracking down documents. Your time, patience, and diligence IS worth it. Without these documents we can't complete your onboarding because our any future tax and accounting services we provide would be inaccurate.

Required Documents, In order of Importance:

1. Prior Year 1120-S

   1. If still in process of being filed, please tell us who is filing it and the estimated month of completion

2. Bank Statements for Checking and Credit Card Accounts

   1. PDF statements for all months of the first year Collective is doing the bookkeeping

3. Business Loan/Liability Statements

   1. For SBA loans or any other loans made to the LLC

4. Prior Year Balance Sheet (Cash Basis)

   1. If you haven't been taking care of your balance sheet prior to joining Collective, you might find that your onboarding is a little more difficult.

5. Prior Year Income Statement (Cash Basis)

6. Prior Year General Ledger (Cash Basis)

2. Collective Builds the Balance Sheet

We'll take the documents you've uploaded and build your Balance Sheet with accurate opening balances. We'll review the Balance Sheet with you when providing your First Financials at the end of Onboarding.

We'll let you know if we have any additional questions. Sometimes we find errors in the uploaded documents you didn't know about. That's ok! Verifying documents you submit to us is all part of our service.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.