My income by customer for the year is less than the 1099 NEC that I received from customer. less than my bank deposits. All of my band deposits all up to the 1099 amount.
Why is my income by customer less than my bank deposits? Thanks
Hello there, @cp15. We appreciate your efforts in finding a solution to your mismatching concerns and providing additional details.
When using the Accrual basis accounting method, if you created an invoice in 2022 for services provided but received payment in 2023, the amount of that invoice will be reflected in your 2022 Income by Customer report. On the other hand, if you're using the Cash basis method, the income will be reported in 2023. This timing difference is the cause of the mismatch.
To match the amounts, you'll need to either create an adjusting entry or modify the dates of the affected transactions. We recommend consulting your accountant to determine the best course of action.
Additionally, here's an article with the guide on closing out your current year and preparing for the next: Year-end guide for QuickBooks Desktop.
If you need further assistance, please don't hesitate to reply to this thread. We're always here to help you in any way we can.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.