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C
cbait
April 18, 2025
Question

My 2023 Income Statement Changed in February Due to the "System" Carring Forward Account Receivable

  • April 18, 2025
  • 1 reply
  • 0 views

I just looked at my 2023 income statement and noticed something VERY ODD. It says our company made way more than it did and when I look at the transactions - AR specifically - the "system" is now carrying forward invoices from 1.5 to 2 years ago. It is now saying that we made way more money than we did. We do have a client that we lost and we had outstanding invoices and these seem to be designated as "carry forwards" in our 2023 income statement now. What is going on? How do I get this fixed? If we get audited, the IRS will assume we cooked our books! HELP. 

1 reply

R
rvrfrf
April 18, 2025

Thanks for reaching out to the Community, cbait. I appreciate your detailed information.

 

To properly identify why invoices are being carried forward on the income statement, I'd recommend working with an accounting professional. 


If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:

 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:
 

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
  3. Select Send message.

 

I've also included a detailed resource about working with income statements which may come in handy moving forward: Income statement - Definition, preparation, & examples

 

Please feel welcome to send a reply if there's any additional questions. Have a wonderful Friday!

C
cbaitAuthor
April 18, 2025

I have a ProAdvisor. That's not the issue. My question is why do I have carry forwards when I didn't do it and the "system" did? I am not going to pay my Pro Advisor for something that was done by QBO. Seems like a waste of money. So my question still stands, why are there carry-forwards in my AR when I did nothing and the system did?

S
ShangY
April 18, 2025

Hello @cbait, I completely understand your concerns and it’s perfectly reasonable to seek clarity on this matter. Allow me to chime in and share my thoughts on this important topic.
 

Outstanding invoices might be classified as "carry forwards" in your 2023 income statement for several essential reasons:
 

  1. Unpaid Invoices: These invoices remain unsettled by your customers, necessitating their transfer to the next accounting period to accurately reflect the financial state.
  2. Accounting Practices: The practice of carrying forward allows for a continued recognition of receivables from one accounting period to the next, maintaining the accuracy and continuity of financial reporting.
  3. Revenue Recognition: The status of outstanding invoices can significantly influence the timing of revenue recognition, which could have implications for your overall financial statements.

 

To gain a better understanding of the specific invoices and their current statuses, I strongly recommend consulting with your accountant to conduct a thorough review of your accounts receivable. This can aid in addressing any discrepancies and ensuring your financial records are correct and up-to-date.
 

Additionally, for further insights into working with income statements, feel free to visit this resource: Income Statement - Definition, Preparation, & Examples. This guide will help you grasp the complexities involved in the preparation and interpretation of income statements.
 

Please let me know if there’s anything more I can do to assist you. It’s really important to me that you feel comfortable and confident with your financial records and I'm here to help you in any way possible. Just tag me if you need more explanations or have other questions. Have a great day!

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