Bank finance articles and tips

If you own an S Corporation, you must file Form 1120S every year to report income and expenses to the IRS. Part of Form 1120S is a balance sheet. Read on to find out whether you have to complete this report in order for the tax return to be complete.

First, let's review the purpose of a balance sheet - it is a financial report that lists the asset, liability and shareholder's equity accounts. It is found on page 4 of Form 1120S and is known as Schedule L.