Hey Aimée! How's the little one?
So my question is regarding accrual accounting and closing out a year. Let's say that, hypothetically speaking, your fiscal year ended April 30. And you had a job that happened on April 15. Obviously, all the revenue and expenses associated with that job should be applied to the fiscal year ending April 30. But, for whatever reason, you didn't get a bill from one of your suppliers until now.
My thought process is that you pay the bill in the current fiscal year and apply it to your accrued expenses GL account. (Which you should have because, hello, you knew you used this vendor and they were going to bill you at some point even though they hadn't yet.)
Am I wrong?
Cool. Are we going to get accounting porn?
Hey Aimée! How's the little one?
Shes great!! Thanks!
You are not wrong. Has the year been closed and if so, was the money accrued? If so, you should good. If not, your next year will be "off" by that amount.
Ooh! I'm all excited that I actually knew the answer to that question, after my one financial class.
It's a giant question mark right now. I have no idea what the person who is supposed to do the bookkeeping did in closing out the year. I just wanted to make sure I understood the way it
should
have been handled before going in tomorrow and talking to our accounting firm.
I'm thinking it probably wasn't done since, god knows, nothing else has been done correctly.
ETA: Thank you. (duh = me)
Iwent through this when I got back from maternity leave, they didn't accrue ANYTHING. Our 2005 is FUCKED.
Oh, Aimée, I feel your pain.
No one has done a bank reconciliation in Peachtree since we started using the software...in 1999. I go to void a check and they're all still there.
Also, I could tell you stories about prepaid expenses and unearned revenue that would make you cry.
We won't even talk about the credit card transactions that were never entered anywhere.
Wow, Jon, that's such great news! It's cool news and it sounds like you've had a crazy week plus. You and FAQ girl deserve some restful time together!!!
Eeeeee! Jon, congrats to you and FAQ Girl!
