Unpaid Invoices At End of Year (Total Income is Inaccurate)
I am working on prepping for taxes and I have an issue in that my income shows as higher in QuickBooks (Online) than the money I actually earned. This is because as of December 31, there were multiple open invoices.
The invoices have been paid in the 3 months since, but that's all income that was received this year not last year. I am going to file taxes and I don't want to be taxed on money I didn't make last year.
I don't know if it's technically "bad debt" because it is/was collectible and it was eventually paid (the tutorial notes "Bad Debt" as "non-collectible").
When I try to apply the credit memo, I can't point to the right invoices because they've been paid.
Any thoughts on what I should do? Should I just explain the situation to my accountant or is there something I can do in QuickBooks (Online) to get around this and make my income reflect the actual money received last year?