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March 20, 2024
Question

Reclassify income accounts

  • March 20, 2024
  • 2 replies
  • 0 views

My client's business is an hvac services company (LLC). Bases on his p&l, I would like to reclassify the account name from gross recipes to service income because the mapping in quickbooks is wrong.. Many invoices are mapped to gross receipts starting from 2021. Can I take the total and make a journal entry of each month for the 2023 books from gross receipts to service income? For 2021-2022, it's just as it is since the tax has already been filed? 

2 replies

March 20, 2024

I can share information about reclassifying transactions in QuickBooks Online (QBO), charm25. 

 

The ability to reclassify transactions is exclusive to QuickBooks Online Advance and Accountant. Ensure you know which transactions you want to reclassify. 

 

In QuickBooks Online Accountant

 

  1. Open your client's QuickBooks Online company.
  2. Select the Accountant Tools, then Reclassify transactions.

 

In QuickBooks Online Advanced

  1. Open your QuickBooks Online account.
  2. Click the Gear icon, then Reclassify transactions.

 

You can check this article for more information: Reclassify or move multiple transactions at once.

 

However, If you're using a different version, you can edit your transactions one at a time. I'll show you how:

 

 

  1. Go to the Transactions menu, then choose Chart of Accounts.
  2. Choose the account you wish to reclassify by selecting the View Register option.
  3. Locate the transaction that you'll reclassify. 
  4. Expand the transaction by clicking on it and then click Edit.
  5. You can then proceed to modify the account as needed.

 

Additionally, you may want to explore upgrading your QBO subscription to QBO Advanced. This way, you can utilize the reclassifying tool. These allow you to save time and modify multiple transactions simultaneously.

 

Keep your posts coming if you have additional questions about reclassifying transactions. I'm always here to help. Have a great day. 

Rainflurry
March 22, 2024

@Charm25 

 

"Can I take the total and make a journal entry of each month for the 2023 books from gross receipts to service income? For 2021-2022, it's just as it is since the tax has already been filed?"

 

Yes, you can make journal entries for each month: debit Gross Receipts, credit Service Income.  It won't be any issue with tax returns since you're just reclassifying from one income account to another income account,