Recording transactions with its applicable tax yrs

CurtisStevens · ‎January 10, 2022

Is there a way to record expenses or transactions in QB but have it apply to the previous yr? For example, you have until when you file your 1120s tax return to make any 401K profit-sharing contributions. Since it is an expense for the s-corp, I want it to show up in the reports, P&L, etc. It will only show up in the appropriate place if I record the transaction during that yr, 12/31/2021 for example, even though I may not make the contribution until 3/2022. So essentially I'm recording the transaction as 12/31 but may not clear or hit my bank account until 3/2022 as in this example. How does everyone handle this? I know this works but doesn't feel like it's the right way to do accounting and must be a more standard way of doing it.

AlcaeusF · ‎January 10, 2022

Hello @CurtisStevens,

Welcome aboard to the Community. I'd be glad to lend a hand with entering transactions in QuickBooks Desktop.

You can use the Journal Entry feature to enter transactions and apply to the previous year. You'll have the option to choose your desired date and debit/credit accounts to balance the books.

Here's how:

Open QuickBooks Desktop.
Go to the Company tab at the top menu bar.
Select Make General Journal Entries.
Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
Select Save or Save & Close.

Also, I recommend consulting an accountant for expert advice about your situation. They'll be able to guide you with what to debit and credit, as well as how to ensure books are error-free.

For more information about journal entries, as well as how to reverse or delete them, I recommend the following article: Create a journal entry in QuickBooks Desktop for Windows or Mac.

Keep me posted if you need more help recording transactions in QuickBooks Desktop. I'll be happy to help you some more.

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Recording transactions with its applicable tax yrs

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