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Join nowI have a company that closed end of 2020 (company A) and a new company started 1/1/2021 (company B). All transactions for company B were run through company A's bank account for January. I have since created a "bank account" in Company B's COA so I could move all the transactions from January into Company B's QBO. I have one transaction that I am not sure how to handle.
One invoice from Company A was paid in January. I do not want to move the payment since I want to show and report that all AR has been collected for Company A. How do I show that income on the Company B bank account without really showing it as income so that the balance is right? I am worried that I will end up reporting the income twice.
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It really depends on whether you file as an accrual based tax payer or a cash based taxpayer.
In accrual it is accounted for as of the date of the invoice. make a deposit and use owner equity investment as the source account for the deposit
In cash based it is income when received, 2021 in other words. make a deposit and use Other income as the source account for the deposit
It really depends on whether you file as an accrual based tax payer or a cash based taxpayer.
In accrual it is accounted for as of the date of the invoice. make a deposit and use owner equity investment as the source account for the deposit
In cash based it is income when received, 2021 in other words. make a deposit and use Other income as the source account for the deposit
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