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Alicia_B
July 3, 2024
Question

Moving a payment from one year to the next in accrual accounting

  • July 3, 2024
  • 1 reply
  • 0 views

My company made a business liability insurance payment in December 2023. The payment was for Jan, Feb and Mar 2024. Taxes have been filed. The books are closed. There is no changing the date on the payment or adding it to an accrued asset account. How can I bring this to 2024 without changing last years books? Or should I just accept what is done is done and nevermind that my P&L looks like I didn't pay liability insurance for the first quarter in 2024?

 

Any input is appreciated.

1 reply

BigRedConsulting
BigRedConsulting
July 3, 2024

RE: How can I bring this to 2024 without changing last years books? 

 

You can't both change last years books and not change last year's books. So, there's no way to do what you're suggesting.

 

If this insurance payment is paid regularly, quarterly, but at the end of the month before the quarter starts, then I don't think you need to adjust it, since each quarter will have a payment and each year will have four payments covering the year.

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