Discussion:Petty Cash Account Mess = Non-Deductible?
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| + | {{ForumReplyPost|UserID=TTMM|Date=1 January 2009|Text=I would ask the client how the entries got there. QB may be a piece of crap (my opinion) but it doesn't usually create entries out of thin air. | ||
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| + | I have a client who uses a petty cash account for expenses that were paid by cash or from personal funds. Then periodically she issues a check to herself for reimbursement of the expenses which are deductible to her company. Perhaps that is what is going on here. | ||
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| + | Have you reconciled the QB file to tax returns? Perhaps the tax preparer adjusted the petty cash account in prior years and you just need to enter the adjusting journal entries in the QB file.}} | ||
Revision as of 20:10, 1 January 2009
Discussion Forum Index --> Accounting Questions --> Petty Cash Account Mess = Non-Deductible?
PurpleBrain (talk|edits) said: | 1 January 2009 |
| A new client brought me a trainwreck of a QB file. One (smaller) issue is the petty cash account balance of $1,700 w/transactions from 2005-present.
The client asked me, "What's the petty cash account used for--it's not a "real" account is it?" Ack! Anyway, there's only two transactions in there from this year; one's supposedly all travel-related expenses, and the other's not accounted for. Receipts not on hand. I need to get this account down to zero, as the client will not be using it in the future. I cannot justify expensing any amounts to say, office expense, etc., without proper receipts. So, leaves me with non-deductible expense? Best option? | |
| 1 January 2009 | |
| I would ask the client how the entries got there. QB may be a piece of crap (my opinion) but it doesn't usually create entries out of thin air.
I have a client who uses a petty cash account for expenses that were paid by cash or from personal funds. Then periodically she issues a check to herself for reimbursement of the expenses which are deductible to her company. Perhaps that is what is going on here. Have you reconciled the QB file to tax returns? Perhaps the tax preparer adjusted the petty cash account in prior years and you just need to enter the adjusting journal entries in the QB file. | |
