just acquired a client whose balance sheet and income/expense needs to be cleaned. There is a liability account with a huge balance and the expense account does not show in the P&L. client deducts from the subcontractors'weekly pay the amount for their truck insurance which is credited to a Liability account and then the monthly payment to the insurance has been applied to the expense account.
i want the bal sheet to reflect the true balance of the liability acct which is huge. if the payment is allocated to the liability account,it decreases the account but the expense is not reflected in the income/loss report
i am in the process of doing the financials for end of year
