Hi,

Accounting end of year question.

Was sending my Profit and Loss (2024) to my accountant and saw it was showing Net Operating Income of $24,000 or some change (after business expenses, it is $3,000 or so in the negative).

But I am still in the middle of a job where I issued an invoice for $50,000 and the customer still has $24,168.18 of credit and the job is not complete.

Here is my setup:

The job is called '508' and I had issued a $50,000 invoice and customer has paid it, into Accounts Receivable.  I make all payments into sub-accounts accordingly (Plumbing, Electric, Framing, HVAC, etc.).

Accountant said I have to do this:

Move the $24,168.18 to Accounts Payable ( Prepay 508 on account) from revenue.

Dr Revenue 508 $24,168.18

Cr Accounts Payable- 508  $24,168.18

But how do I do this?  Not sure what does he mean?

Thanks,

Baylight Contracting