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cp15
Level 1

income by customer less than my bank deposits

My income by customer for the year is less than the 1099 NEC that I received from customer. less than my bank deposits. All of my band deposits all up to the 1099 amount.

Why is my income by customer less than my bank deposits? Thanks

 

Solved
Best answer March 09, 2024

Best Answers
JanbonN
QuickBooks Team

income by customer less than my bank deposits

Hello there, @cp15. We appreciate your efforts in finding a solution to your mismatching concerns and providing additional details. 

 

When using the Accrual basis accounting method, if you created an invoice in 2022 for services provided but received payment in 2023, the amount of that invoice will be reflected in your 2022 Income by Customer report. On the other hand, if you're using the Cash basis method, the income will be reported in 2023. This timing difference is the cause of the mismatch.

 

To match the amounts, you'll need to either create an adjusting entry or modify the dates of the affected transactions. We recommend consulting your accountant to determine the best course of action. 

 

Additionally, here's an article with the guide on closing out your current year and preparing for the next: Year-end guide for QuickBooks Desktop.

 

If you need further assistance, please don't hesitate to reply to this thread. We're always here to help you in any way we can.

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5 Comments 5
cp15
Level 1

income by customer less than my bank deposits

I've just noticed something. I have 4 invoices dated in 12/22 but received payment for them in 1/23. These 4 invoices equal the amount I'm short by on my 1099 NEC vs. Income by customer report for 2023.

So when I create an invoice in 2022 the amount of that invoice is reflected in my 2022 Income by customer report even though I receive payment in 2023?

How would I get the numbers to match?

JanbonN
QuickBooks Team

income by customer less than my bank deposits

Hello there, @cp15. We appreciate your efforts in finding a solution to your mismatching concerns and providing additional details. 

 

When using the Accrual basis accounting method, if you created an invoice in 2022 for services provided but received payment in 2023, the amount of that invoice will be reflected in your 2022 Income by Customer report. On the other hand, if you're using the Cash basis method, the income will be reported in 2023. This timing difference is the cause of the mismatch.

 

To match the amounts, you'll need to either create an adjusting entry or modify the dates of the affected transactions. We recommend consulting your accountant to determine the best course of action. 

 

Additionally, here's an article with the guide on closing out your current year and preparing for the next: Year-end guide for QuickBooks Desktop.

 

If you need further assistance, please don't hesitate to reply to this thread. We're always here to help you in any way we can.

cp15
Level 1

income by customer less than my bank deposits

Thank you so much!

 

cp15
Level 1

income by customer less than my bank deposits

Can I change Accrual basis accounting method, to  Cash basis method?

ShangY
QuickBooks Team

income by customer less than my bank deposits

Glad to have you back in the Community, cp15.
 

There's an option to change Accrual basis to Cash basis in QuickBooks Desktop (QBDT). Let me show you how:

 

  1. Start QuickBooks and select the Edit menu.
  2. Choose Preferences to open the dialog box.
  3. Select Reports and Graphs in the left pane.
  4. In the Company Preferences tab, click Cash in the Summary Reports Basis section.
  5. Click OK to apply change.

In addition, if you want to learn more on how to customize the data, add or delete columns, add or remove info on the header/footer, and personalize the font and style of report, you can check this article: Customize Reports in QuickBooks Desktop

 

If you have more questions or concerns about accounting methods or any other QuickBooks Desktop concern, please let me know. Have a good day!

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