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February 12, 2023
Question

How do I enter an expense that should go against 2022 but it didn't get paid until 2023?

  • February 12, 2023
  • 1 reply
  • 0 views
Example - an invoice is dated December 22, 2022 but it isn't paid until January 16, 2023

1 reply

LeithG
February 13, 2023

Hi Mcfgm

 

Generally you want invoices to be reflected as of their real date so that due dates are calculated correctly, and your expenses versus income also match; however, there are a few cases in which you might be tempted to alter the date.

1. When you've already submitted your GST return for the month/period in which the invoice falls.  If you've already submitted your GST return, don't worry too much as this older invoice will simply show up as an input credit on future filings.

2. When you've closed a financial year / submitted corporate taxes.  In this case, an older expense would alter your net income/taxes and you probably don't want that.  In that case, enter it as an 'accrued expense' (hitting the balance sheet) and move it off the balance sheet into expenses in the new accounting period.

 

HOpe this helps!

Leith.

February 13, 2023

Thank you so much for your help Leith!