AGMAIN
Level 2

Other questions

qbteachmt 

I did confirm that our taxes were reported on a cash basis. Based on your scenario it sounds like the accountant is right that the money needs to be counted as income for the year.  If I am understanding correctly the initial deposit should not be going to a liability account but to a sales account. So I have it set up incorrectly in Quickbooks to begin with. If it was set up as a sales account I would not have to move it at year end because it would already be counted as income and not a liability?