How am I supposed to balance the balance sheet when the client has no revenue and lots of expenses, nothing for inventory, no cash, equipment, etc. THANKS!!!

Hi there, I am doing corp taxes for a client that is 2 years behind. 

For their first year, they have $100 revenue, but a ton of expenses. 

They have no assets at all. 

How am I supposed to balance the balance sheet when all I have is $100 revenue and $5000 expenses, nothing for inventory, no cash, equipment, etc. 

Thanks in advance!

Answer

Hello,

The S100 balance sheet is a standard form for all corporations and they must always balance, even inactive corporation or corporations with a loss have balance sheet which balance.  I believe there might be some information which is missing in the financial statements.  For more information on this I would invite you to either contact our support line at 1-866-438-8020, or for a better tax advice answer contact CRA tax tip line at 1-800-267-6999.

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