Level 1

How does quick books handle advanced revenue in cash flow statement

advance revenue received in Dec 2019. a second advance revenue received in January 2020. total is earned monthly in 2020 at 1/12th each month and recorded by journal entry to liability account and income. in quick book cash flow statement the earned income is shown as a deduction to net income. it should be an addition to earned income not a deduction of earned income. if you adjust qb cash flow than the adjusted cash flow statement will not agree with qb cash flow statement.
QuickBooks Team

Reports and accounting

Let me provide some details about the cash flow statement in QuickBooks Online, @lenw1.

 

In the Journal entry posting, both income and liability can't be increased. To create a journal entry, here's how: 

  1. Sign in to your QuickBooks Online account.
  2. Go to the + New button
  3. Select Journal entry.
  4. Fill out the fields to create your journal entry.
  5. Click Save and new or Save and close.

I also recommend following the advice of your accountant.

 

I've also added these article that can guide you more about cash flow in QuickBooks Online: 

Keep me posted if you need further assistance. I'll be glad to assist you. Have a blessed day.