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Clontarf1014
Level 1

Invoices listed in 2019 and paid in 2020 are not posting as income in 2020, overstating 2019 Income and under reporting 2020 Income. How to correct?

 
1 Comment 1
MorganB
Content Leader

Invoices listed in 2019 and paid in 2020 are not posting as income in 2020, overstating 2019 Income and under reporting 2020 Income. How to correct?

Hello, Clontarf1014.

 

Those payments that overlap from one year to another can be a little tricky. I'd be glad to provide some information as to why these payments are posting this way.

 

This is actually due to Cash vs. Accrual accounting methods. The cash method would record income as though it happened when you received the payment. Accrual basis records the payments when you sent the invoice.

 

You can find out more about these different accounting methods by checking out this article: https://quickbooks.intuit.com/learn-support/en-us/product-preferences/choose-between-cash-and-accrua....

 

It's always a good idea to talk with your accountant to find out which option is best for your business set up and books.

 

Please don't hesitate to reach back out here if you have any other questions.

 

 

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