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lenw1
Level 1

How does quick books handle advanced revenue in cash flow statement

advance revenue received in Dec 2019. a second advance revenue received in January 2020. total is earned monthly in 2020 at 1/12th each month and recorded by journal entry to liability account and income. in quick book cash flow statement the earned income is shown as a deduction to net income. it should be an addition to earned income not a deduction of earned income. if you adjust qb cash flow than the adjusted cash flow statement will not agree with qb cash flow statement.
1 Comment 1
Rubielyn_J
QuickBooks Team

How does quick books handle advanced revenue in cash flow statement

Let me provide some details about the cash flow statement in QuickBooks Online, @lenw1.

 

In the Journal entry posting, both income and liability can't be increased. To create a journal entry, here's how: 

  1. Sign in to your QuickBooks Online account.
  2. Go to the + New button
  3. Select Journal entry.
  4. Fill out the fields to create your journal entry.
  5. Click Save and new or Save and close.

I also recommend following the advice of your accountant.

 

I've also added these article that can guide you more about cash flow in QuickBooks Online: 

Keep me posted if you need further assistance. I'll be glad to assist you. Have a blessed day.

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