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Teri
Level 9

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Oh my.  Just saw this post but have seen this done before and have to assume it is a Tax issue as well since I know it is an issue when doing accounting.  Again wish I could attach a pre-written explanation I have here.

 

First, good for you for understanding concept of accounting periods here, but I would have to suggest a step backwards to re-consider and revise your practices to avoid issues with the IRS but CPA should know.

 

When you setup your company (LLC, S Corp or whatever) your business entity specifies when your fiscal year ends.  Most commonly that is 12/31 of each year, although some companies use other dates, like Federal Govt fiscal year ends on 09/30 of each year.  I have also seen 1/31, 3/31 and 6/30 at prior jobs.

 

So your income tax return each year needs to end on the date you chose, the same date every year end. That date cannot change every year and you definitely do not want it to be different than QB accounting.

 

Sometimes when accounting system "can't" do something, it is because you should not be doing it and that is a big red flag for you to find out why vs. trying to work around it or force it to do something weird.

 

Yes, many companies have accounting periods, timesheet periods, billing periods or whatever that may

be weekly, biweekly, semi-monthly, etc. and we know the calendar just does not work that way, but there 

is a right way and a wrong way to accomodate these and I can share easy explanation document if you want to email me at [removed].  No strings attached, already written, I will just email a copy.

 

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