It is a recommended to regularly record and track your business activities and transactions to gather the necessary information needed to file Form 1120 S for your S Corporation or LLC treated as an S Corporation.
Below is the basic checklist to get your business financial documents ready to file Form 1120S.
- Reconcile your bank account with your journal entry.
- Check all your sales have been recorded.
Total Asset
It is needed to complete Item F on Form 1120S page 1.
- Cash in the business account
- Capital contribution by shareholders.
- Profit or loss generated.
- Track distribution to shareholders other than compensations to officers.
Form 1125-A- Cost of Goods Sold
Have the necessary data to complete form 1125-A cost of goods sold and line 2 page 1 of Form 1120S.
- Check if your products in inventory have been counted and the record is up to date.
- All products purchased for resale should be entered in inventory.
- Product sold should be removed out of inventory.
- Raw materials used to produce finished goods should be out of inventory.
- Finished goods should be added to inventory.
- Know the cost of your inventory at the beginning of the year, the cost of inventory at the end of the year, and the cost of inventory sold.
Revenues
- Record your revenues by activities performed in your business.
- Interest earned.
- Royalties’ income
Expense Summary
To complete Form 1120S page 1 Deductions sections and Schedule K Deductions sections.
- Record expenses by activities
- Track officers’ compensations
- Track employees’ salaries
- Record expenses by sources of revenue (interest expenses, expenses related to royalties)
Depreciation Spreadsheet
To claim depreciation deduction for assets in service and assets placed in service during the tax year.
The Depreciation record is helpful to complete Form 4562 Depreciation and Amortization when required, to complete line 14, page 1 Form 1120S, and to report Section 179 on Schedule K and K-1 when applied.
For new assets placed in service during the tax year:
- Record them to be able to complete Form 4562.
- The date of purchase, the date placed in service, and the purchase cost should be recorded.
- Find the depreciation rate to use based on the recovery period, the depreciation method, and the convention chosen.
- Calculate the depreciation deduction for each year of the recovery years and file it for future tax seasons.
For old assets:
- Have in your record depreciation deduction for assets placed in service in prior years.
Officers Compensations
- Record of salary paid to shareholders working in the business to claim on Line 7 page 1 of Form 1120S.
Forms 940, 941, 944
Track your business share of employment taxes paid to be able to deduct them.
- Record of Unemployment Tax paid
- Employer share of social Security paid.
- Employer share of Medicaid Paid.
Revenues and Expenses to Track to File IRS Form 1120S: Form 1120S Checklist-LD2161
List of Expenses and Revenues to track to file form 1120S 
List of Expenses and Revenues to track to file form 1120S 
List of Expenses and Revenues to track to file form 1120S 
List of Expenses and Revenues to track to file form 1120S 
List of Expenses and Revenues to track to file form 1120S 
List of Expenses and Revenues to track to file form 1120S 
Form 1120S Checklist-LD2161 
Form 1120S Checklist-LD2161 
Form 1120S Checklist-LD2161 
Form 1120 S business tax checklist-6-14-21
