My 2023 Income Statement Changed in February Due to the "System" Carring Forward Account Receivable

Thanks for reaching out to the Community, cbait. I appreciate your detailed information.

To properly identify why invoices are being carried forward on the income statement, I'd recommend working with an accounting professional. 

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   
   

Once you've found an accountant, they can be contacted through their Send a message form:
 

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
3. Select Send message.

I've also included a detailed resource about working with income statements which may come in handy moving forward: Income statement - Definition, preparation, & examples

Please feel welcome to send a reply if there's any additional questions. Have a wonderful Friday!

I have a ProAdvisor. That's not the issue. My question is why do I have carry forwards when I didn't do it and the "system" did? I am not going to pay my Pro Advisor for something that was done by QBO. Seems like a waste of money. So my question still stands, why are there carry-forwards in my AR when I did nothing and the system did?

Hello @cbait, I completely understand your concerns and it’s perfectly reasonable to seek clarity on this matter. Allow me to chime in and share my thoughts on this important topic.
 

Outstanding invoices might be classified as "carry forwards" in your 2023 income statement for several essential reasons:
 

1. Unpaid Invoices: These invoices remain unsettled by your customers, necessitating their transfer to the next accounting period to accurately reflect the financial state.
2. Accounting Practices: The practice of carrying forward allows for a continued recognition of receivables from one accounting period to the next, maintaining the accuracy and continuity of financial reporting.
3. Revenue Recognition: The status of outstanding invoices can significantly influence the timing of revenue recognition, which could have implications for your overall financial statements.

To gain a better understanding of the specific invoices and their current statuses, I strongly recommend consulting with your accountant to conduct a thorough review of your accounts receivable. This can aid in addressing any discrepancies and ensuring your financial records are correct and up-to-date.
 

Additionally, for further insights into working with income statements, feel free to visit this resource: Income Statement - Definition, Preparation, & Examples. This guide will help you grasp the complexities involved in the preparation and interpretation of income statements.
 

Please let me know if there’s anything more I can do to assist you. It’s really important to me that you feel comfortable and confident with your financial records and I'm here to help you in any way possible. Just tag me if you need more explanations or have other questions. Have a great day!

Thanks for your response @ShangY . However, your response still doesn't address the root cause of the issue. In January and February of this year (after I closed 2023), there were a number of "Indirect edit by System" transactions. I DID NOT DO ANYTHING. NOR DO I WISH TO PAY MY PROADVISOR MONEY TO FIGURE OUT THESE OUT. Intuit made them and screwed up my profit and loss statment. So can you please help me figure out why? This is an error on your side and I don't think I should have to shell out money to figure out your system errors. 

Thanks for your response but my question still remains. Intuit made a bunch of "Indirect edit by System" in January and February of 2024 that completely changed my 2023 income statement. I have already filed taxes for 2023. So what are these edits? And, why were they made? They screwed up my income statement. And, I do not wish to pay my ProAdvisor or anyone other accountant to figure out why. This is YOUR SYSTEMS THAT SCREWED UP. So now I need help reversing what has been done NOW. I have attached a screenshot of one particular invoice but there are many more. 

QuickBooks Online's system-initiated changes stem from various factors, cbait. I'd also like to let you know that we take your concern seriously, and we're committed to helping you get your financial records back to their accurate state.

Allow me to shed light on the key elements that drive these automated updates in our system.

The purpose of these automated procedures is to maintain data accuracy and ensure comprehensive record-keeping throughout your QBO account. Some examples of these processes are:

• Manual changes are made that directly affect another record. This happens after editing a payment that's applied to an invoice.
• Third-party app integration. Syncing or downloading data from external applications can result in changes logged as System Administration actions.
• Automated transactions. When recurring transaction templates generate or add new entries automatically, these are attributed to System Administration.
• Banking synchronization. Updates from connected online banking services can prompt system-level changes.

These edits and changes that are made by the system are made to maintain the integrity of your QBO data, even though they may not be directly initiated by you as the user.

Let me share this article that provides details about this when running the Transaction history and Audit log reports: Use the audit log to re-enter deleted transactions in QuickBooks Online.

To pinpoint the exact cause behind the "Indirect edit by System", I'd recommend reaching out to our phone or chat support team. They can thoroughly analyze your Audit log report and provide clarification about the system-initiated changes.

Here's how to reach out to them:

1. Click the Help menu in the upper-right-hand corner of QBO.
2. Proceed to the Assistant tab.
3. Type in "contact support" in the chat box and press Enter.
4. Select Contact a human, then click Live Chat or Call me back.
5. Type in a short description of your concern and click Continue.
6. Choose between Callback or Chat.

Just in case you might need them in the future, I'm sharing these articles about restoring deleted data and customizing financial reports:

• Use the audit log to re-enter deleted transactions in QuickBooks Online
• Customize company and financial reports

Let me know if you have any other questions when running Audit history to track the changes in your account as well as running financial reports. We're always here to make sure you have all the support you need.

@cbait 

"So what are these edits? And, why were they made?"

Do you have a 3rd party app integrated with QB?  What changes are shown in the Audit Log for these transactions?  Are you on cash or accrual basis? 

"It says our company made way more than it did and when I look at the transactions - AR specifically - the "system" is now carrying forward invoices from 1.5 to 2 years ago. It is now saying that we made way more money than we did. We do have a client that we lost and we had outstanding invoices and these seem to be designated as "carry forwards" in our 2023 income statement now."

Were the outstanding invoices for the lost client ever closed?  If so, how?