My insurance policies renew on the calendar year and are payable before it starts. This creates a situation where the previous year's insurance payments are applicable to the current year's budget. If I adjust the dates of the payments to the current year, it will screw up the reconciliation of my accounts. How do I deal with this?
I've come to provide information about your concern.
Yes, adjusting the date of payments is not recommended as it may create problems with your reconciled account. In QuickBooks Online (QBO), you'll have to record the transactions that happened in real life to avoid messing up your books. That said, you have to follow your bank statement and record the payments on the correct dates.
Also, since this involves past transactions, I recommend reaching out to your accountant to guide you on how you can accurately record this. If you're not affiliated with one, you can use our Find an Accountant tool to look for one near your area.