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May 29, 2025
Question

Expenses

  • May 29, 2025
  • 1 reply
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I’m a sole proprietor so when I purchase something I pay for it then. But my expenses from 2024 have meshed into 2025. Why is that? And what do I do to correct this?

1 reply

May 29, 2025

Hi, Charlie. Ensuring that transaction dates are verified and fiscal year settings are correct is essential for allocating expenses to the appropriate years.

 

The common cause of this is entering incorrect transaction dates manually, such as recording a transaction date in 2025 instead of 2024.

 

 We'll need to review the dates on each transaction to ensure they are entered correctly according to the year they belong to. To do it, follow the steps below:

 

  1. Go to the Expenses tab from the left sidebar.
  2. Use the filter option to sort transactions by date. You can set the filter to show transactions from 2024 and then another filter to show transactions from 2025.
  3. If you find any transactions with incorrect dates, click on the transaction to open it.
  4. Edit the transaction date to reflect the correct year.
  5. Save the changes.

 

After you have corrected the dates, run an Expenses by Vendor Summary report or a Profit and Loss report. Set the reporting period to 2024 and 2025 separately to ensure expenses are recorded in the correct year.

 

Moving forward, select the correct date when entering new transactions to ensure accuracy.

 

Lastly, if the situation persists, I want you to review the setup of your fiscal year in QBO:

 

  1. Go to the Gear icon (located at the top-right corner of the page). Select Account and Settings in the below section and tap Advanced.
  2. Check the First month of the fiscal year and ensure it's set correctly.

 

To record, edit, review, and delete expenses, this article will be your guide: Enter and manage in QuickBooks Online.

 

If any help is needed or any questions come up, don't hesitate to respond to us using the Reply button below.