For sellers and self-employed people · Free to upload
Your bank deposits, month by month
Upload your bank statements and LedgerLens builds one row per month: total deposits, then transfers between your own accounts, loans, refunds and returned-check redeposits in their own columns, and the deposits left. Type the sales you reported for each month to see the gap. It's a worksheet for your tax preparer or attorney.
Built from the statements you upload. No bank login. Sources
- One row per month
- Set-aside deposits you can check
- Your reported sales beside each month
Make the worksheet in three steps
- Upload your bank statements for the months you need. PDF, CSV, Excel, OFX, QFX, QBO and photos all work.
- Open Statement list and choose Deposits by month. You'll see one row per month with total deposits, the set-aside columns and the deposits left.
- Open a month to see every deposit in it, and move any deposit in or out of a set-aside column. Then type the sales you reported for each month.
What the worksheet shows
One row per calendar month, oldest first.
- Total deposits: every deposit on your bank statements that month
- Own-account transfers: money you moved between your own accounts
- Loans
- Refunds
- Returned or NSF redeposits
- Deposits left: total deposits minus the four set-aside columns
- Sales you reported, which you type in
- The gap: deposits left minus the sales you reported
How deposits are sorted
LedgerLens sets aside what your statements show, and marks the rest for you to check.
- A deposit goes in Own-account transfers when another bank statement you uploaded, covering the same dates, shows a transfer out of the same amount within 3 days.
- Customer payments by Zelle, wire or ACH can carry a transfer label too. A deposit with that label and no matching transfer out is marked “Check: may be a transfer” and stays in deposits left until you move it.
- A deposit goes in Loans, Refunds or Returned or NSF redeposits when its description says so, for example “loan,” “refund” or “redeposit.”
- Card statements, investment statements, tax forms and receipts are left out. Card credits aren't bank deposits.
- You can change any of these, one deposit at a time.
What the audit manual says
From the California Department of Tax and Fee Administration (CDTFA) Audit Manual, Chapter 4, section 0405.25, Bank Deposits:
“In cases where the taxpayer has maintained a bank account, the bank deposits may be a more accurate source of determining gross receipts than recorded figures.”
“In either method, the bank deposits should be scheduled by months from the bank statements, from the bank deposit books if verified as reflecting all deposits, or from data furnished by the bank.”
“Deposits representing receipts from sources other than sales, i.e., loans, redeposits of NSF checks, rental income from real property, charges relating to cashing customers’ checks, etc.”
Read Chapter 4 of the audit manual (PDF)
The worksheet's set-aside columns are own-account transfers, loans, refunds, and returned or NSF redeposits. A deposit that isn't a sale and doesn't fit those columns stays in deposits left. Add a note to it in the list for your tax preparer.
Build your deposits worksheet
Create a free account and upload your bank statements. You'll see the worksheet before you pay anything.
Free to start. No bank login.
Making the worksheet is free on Starter. Downloading its deposits as an Excel file needs Plus: $12 a month or $120 a year.
FAQ
Common questions
Does the worksheet say what I owe?
No. It's a worksheet for your tax preparer or attorney. It lists your deposits and the sales you type in. It isn't a tax figure, and it doesn't say what you owe.
Why might deposits and reported sales differ?
Deposits are what reached the bank, not a sales total. They can include sales tax you collected or money that isn't from sales, and cash you didn't deposit isn't in them. Your tax preparer can tell you what a gap means for you.
How does LedgerLens spot transfers between my accounts?
It looks for the other side. When another bank statement you uploaded, covering the same dates, shows a transfer out of the same amount within 3 days, the deposit goes in Own-account transfers. Upload every account's statements so both sides are there.
What does “Check: may be a transfer” mean?
The deposit carries a transfer label, but no matching transfer out was found in your other statements. Customer payments by Zelle, wire or ACH often look like this. It stays in deposits left until you move it.
Can I move a deposit in or out of a column?
Yes. Open a month and choose a column for any deposit. Your choices and the sales you type are saved in this browser for your account.
Is it free to make the worksheet?
Yes. Uploading statements and reading the worksheet costs nothing. Downloading the list of deposits as an Excel file needs a paid plan. See plans and prices.
Do I have to connect my bank?
No. You upload statement files you already have, such as PDFs from your bank's website. LedgerLens never asks for your bank login.
Sources
The quotes above come from the CDTFA Audit Manual. The link lets you read the section in full.
- California Department of Tax and Fee Administration, Audit Manual Chapter 4, General Audit Procedures (PDF), section 0405.25, Bank Deposits
- LedgerLens plans and prices
Prepared by the LedgerLens team. LedgerLens (ledgerlens.com) is a bank-statement review web app from Edukas Solutions LLC, a California company.
Related
- Have statements as PDFs?Turn bank statement PDFs into a list
LedgerLens lists deposits from the statements you upload and the numbers you type. The worksheet isn't a tax figure, and it isn't tax or legal advice. It doesn't decide which deposits are sales, what you should have reported or what you owe, and it doesn't send anything to CDTFA or any other agency. Check the worksheet against your original statements and records before relying on it.