Overview

The Trial Balance Import feature allows you to import financial statement data from a Microsoft Excel trial balance worksheet into Drake Tax business returns. The specially designed trial balance template and import function has the following benefits:

• The need to duplicate entries is eliminated.

• Data entry errors are reduced by automatically importing data to the correct fields.

• Preparers can merge basic accounting functions with tax preparation.

The Trial Balance Import feature is available for 1065, 1120, 1120-S, and 990 returns, and is accessible from the main Data Entry screen.

Before You Begin

Before creating or importing a trial balance worksheet, verify the following:

• The return already exists in Drake Tax.

• Microsoft Excel 2003 or later is installed.

  • The Microsoft Store/App Store version is not supported.

• Excel macros are enabled.

• The trial balance worksheet balances before import.

Enable Excel Macros

The trial balance template requires Excel macros. In Excel, set macro security to Enable All Macros or Disable VBA macros with notification. When prompted, enable macros for the trial balance workbook.

To allow macros in Excel:

1. Select File > Options.

2. Select Trust Center.

3. Click Trust Center Settings.

4. Select Macro Settings.

5. Select Disable VBA macros with notification.

6. Click OK.

Disable Auto-Balance

Auto-balance should be turned off before importing a trial balance. This prevents Drake Tax from automatically adjusting retained earnings or capital amounts and allows balance sheet discrepancies to be identified.

To turn off auto-balance for one return:

1. Open the return.

2. Open screen PRNT.

3. Select Reverse autobalance setup option.

To turn off auto-balance globally, go to Setup > Options > Calculation & View/Print and select Turn off auto-balance of the balance sheet.

Force Schedule L, If Needed

If the entity does not otherwise meet the Schedule L filing requirement, force Schedule L to print before importing.

• 1120: Select Force Schedules G, L, M-1, and M-2 to be printed.

• 1120-S: Select Force-print Schedules L and M-1.

• 1065: Select Force Schedules L, M-1, M-2, and K-1 Section L.

Create the Trial Balance Worksheet

1. Open the business return.

2. From the Data Entry Menu, select Import > Trial Balance Import.

3. Click Create New.

4. Drake Tax opens a new trial balance template in Excel.

Save Location

By default, trial balance templates are saved in the TB folder in the Drake Tax program path.

If the file is saved to a different location, make note of that location before importing. Drake Tax looks in the default TB folder first.

Complete the Trial Balance Worksheet

Enter the client's financial data into the debit and credit columns of the worksheet.

• Editable debit and credit cells are indicated by a dollar amount, such as $0.

• Some lines require additional detail and contain worksheet buttons.

• Worksheet buttons require Excel macros to function.

Balance and Save the Worksheet

The trial balance worksheet must balance before it can be imported.

1. Confirm that total debits equal total credits.

2. Verify that there is no out-of-balance amount shown on the worksheet.

3. Save the worksheet.

4. Close Excel before attempting to import the file.

Import the Trial Balance Worksheet

1. Open the return.

2. Select Import > Trial Balance Import.

3. Browse to the completed trial balance file.

4. Select any applicable import options.

5. Click Next.

6. Wait for the import to complete.

7. Click Finish.

After Importing

After the import is complete:

1. Recalculate the return.

2. Review the applicable data entry screens.

3. Review the return in View/Print mode.

4. Verify Schedule L, Schedule M-1, and Schedule M-2, if applicable.

If the imported results are not correct, edit the trial balance worksheet, save it, and import it again.

Important Limitations

Not all trial balance data can be imported directly into the return. Some items must be entered manually in Drake Tax after import.

Amounts entered on the worksheet Other Tax Detail do not appear on the main trial balance worksheet. However, they import to the appropriate line on screen DED.

Trial Balance Import supports only detail worksheets required by the IRS. Review updated returns for unnecessary detail worksheets (Ctrl + W) and remove any that are not required before importing.

SCH2 Items

Some Schedule L items are marked does not import on the trial balance worksheet. These items must be entered separately on screen SCH2.

To enter SCH2 detail:

1. Open screen SCH2.

2. Select the applicable Line Number.

3. Enter the item description.

4. Enter the beginning-of-year and end-of-year totals.

Enter any items marked "does not import" on screen SCH2. After recalculating the return, those amounts are included in the appropriate Schedule L reporting.

Depreciation

If using Trial Balance Import, enter depreciation amounts directly in the appropriate fields on the trial balance worksheet.

For 1120 returns, COGS depreciation imports to the appropriate line of Form 1125-A. Remaining depreciation must be entered through the applicable Drake Tax depreciation screens so asset-level depreciation is calculated correctly.

For 1120-S and 1065 returns, depreciation may include COGS, real estate rental, rental other than real estate, and other depreciation. Rental depreciation may require detail worksheets associated with screens 8825 or RENT.

Troubleshooting

The file will not import

• Verify that the worksheet balances.

• Verify that Excel macros are enabled.

• Verify that the file is closed in Excel.

Imported amounts do not match the trial balance

• Verify that auto-balance is turned off.

• Review unsupported detail worksheets.

• Complete SCH2 entries for items marked does not import.

Schedule L does not display

Force Schedule L to print using the applicable PRNT or Schedule L option, then recalculate the return.

Practice Worksheets

Practice worksheets are available for training purposes only.

Use Trial Balance Import Practice Worksheets.xls to review examples of balanced worksheets for 1120, 1120-S, 1065, and 990 returns. Do Not attempt to import these examples into a return.