How do I deal with the accountant fee written off in one year but paid for in the next?

smallbiz2020 · ‎December 31, 2019

My business is a sole proprietorship and the accounting is a cash basis.

I did the 2018 monthly accounting in quickbooks and handed in the neccesary reports to an accountant. They did up the paperwork and filed the taxes in the spring of 2019 at which time I paid their fee with the company credit card. They added the fee to the 2018 taxes as a professional expense.

I haven't put the fee into the 2018 quickbooks expenses because I don't know how to deal with it being written off in that year and paid for in 2019. I did enter the credit card charge into the 2019 quickbooks, otherwise it won't be accurate when I reconcile the credit card.

How do I have quickbooks correctly reflect this each year? It will occur again in the spring of 2020 when I pay for the accountant their fee for filing the 2019 taxes.

Thanks in advance.

LauraAB · ‎January 01, 2020

Hello smallbiz2020,

I'm glad to hear that you've been working with an accountant to file your taxes. While QuickBooks Desktop is a great tool for managing your books, having an accountant on your side is the ultimate way to ensure precision and accuracy in your numbers and what you're reporting to the government.

Since you're working with an accountant, I recommend connecting with him or her to find out the best way to account for these fees in your books. Since the fee is being written off in one year and paid for in another, there may be some specific way they'll be able to advise you to record this in the program.

I want to make sure this is recorded correctly and reflects properly in your books. Accountant users here in community may also have insight to share with you, so keep an eye out for input from them as well.

Have a great day. :)

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How do I deal with the accountant fee written off in one year but paid for in the next?

How do I deal with the accountant fee written off in one year but paid for in the next?

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