Report to show yearly income

Posted by Meebers on August 27, 2009, 7:21 pm

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What I am trying to do is to show total income for "year to date." I send
out invoices on 1 Dec each year, they are due 1 Jan. Some customers pay
during the month of Dec (early) while the majority of the customers pay
after 1 Jan. I send all payments to the non-deposited account and then
sometime after the 1st of January, I deposit them into the bank account. If
I do a report to show income "year to date' it obviously leaves out those
who paid early. I could include December, but that would mix income from
both years. I am sure this is not a new problem, but was wondering how
things like this are handled? TIA

Posted by Laura on August 27, 2009, 9:38 pm

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> What I am trying to do is to show total income for "year to date." I send

> out invoices on 1 Dec each year, they are due 1 Jan. Some customers pay

> during the month of Dec (early) while the majority of the customers pay

> after 1 Jan. I send all payments to the non-deposited account and then

> sometime after the 1st of January, I deposit them into the bank account.

> If I do a report to show income "year to date' it obviously leaves out

> those who paid early. I could include December, but that would mix income

> from both years. I am sure this is not a new problem, but was wondering

> how things like this are handled? TIA

Have you tried running a Custom Transaction report on the Income account for
December to today?

As you indicated, any payments received in December belong to the prior
year's income. Given that, what exactly are you trying to accomplish?

Posted by Meebers on August 28, 2009, 2:57 pm

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>> What I am trying to do is to show total income for "year to date." I

>> send out invoices on 1 Dec each year, they are due 1 Jan. Some customers

>> pay during the month of Dec (early) while the majority of the customers

>> pay after 1 Jan. I send all payments to the non-deposited account and

>> then sometime after the 1st of January, I deposit them into the bank

>> account. If I do a report to show income "year to date' it obviously

>> leaves out those who paid early. I could include December, but that

>> would mix income from both years. I am sure this is not a new problem,

>> but was wondering how things like this are handled? TIA

> Have you tried running a Custom Transaction report on the Income account

> for December to today?

> As you indicated, any payments received in December belong to the prior

> year's income. Given that, what exactly are you trying to accomplish?

Repeating: What I am trying to do is to show total income for "year to
date." (1 jan thru 31 dec)

I have tried the custom transaction, Dec to date, but if there is additional
income, it belongs to income for the current year, I do not want to have it
counted towards next years income. Income may come from various categorys,
don't know if appending the categories with "2009"? would solve this or not.
?

Posted by Mark Bole on August 28, 2009, 6:23 pm

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Meebers wrote:

>> As you indicated, any payments received in December belong to the prior

>> year's income. Given that, what exactly are you trying to accomplish?

He's saying some payments received in December are *advance* payments
for service to be provided the following year.

> Repeating: What I am trying to do is to show total income for "year to

> date." (1 jan thru 31 dec)

> I have tried the custom transaction, Dec to date, but if there is additional

> income, it belongs to income for the current year, I do not want to have it

> counted towards next years income. Income may come from various categorys,

> don't know if appending the categories with "2009"? would solve this or not.

Several possibilities, other than a reporting contortion:

1) change your fiscal year to match your business cycle

2) record the payments received early as an upfront deposit or retainer
-- in other words, a liability until January when the income is actually
earned and applied to the invoice.

3) assuming this happens every year and it is a cash basis business,
just live with it: the business receives most of its income in January
and December.

-Mark Bole

Posted by Laura on August 28, 2009, 9:48 pm

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> Meebers wrote:

>>>

>>> As you indicated, any payments received in December belong to the prior

>>> year's income. Given that, what exactly are you trying to accomplish?

> He's saying some payments received in December are *advance* payments for

> service to be provided the following year.

>> Repeating: What I am trying to do is to show total income for "year to

>> date." (1 jan thru 31 dec)

>> I have tried the custom transaction, Dec to date, but if there is

>> additional income, it belongs to income for the current year, I do not

>> want to have it counted towards next years income. Income may come from

>> various categorys, don't know if appending the categories with "2009"?

>> would solve this or not.

> Several possibilities, other than a reporting contortion:

> 1) change your fiscal year to match your business cycle

Their business cycle is Jan 1 to Dec 31. Its the timing of the invoices that
probably should be changed.

I would check with your CPA before changing the fiscal year. Once a fiscal
year is selected that permission from the IRS may need to be obtained to
change it. See this page
http://www.irs.gov/businesses/small/article/0,,id=98673,00.html for more
information on calendar and fiscal year.

> 2) record the payments received early as an upfront deposit or retainer --

> in other words, a liability until January when the income is actually

> earned and applied to the invoice.

Since they are a cash basis company the income is actually earned when
received so calling it a deposit or a retainer because the payment was
received early is not appropriate.

> 3) assuming this happens every year and it is a cash basis business, just

> live with it: the business receives most of its income in January and

> December.

Based on his later post it does happen every year but the previous
bookkeeper was treating the December payments as if received in January. It
would be more appropriate to change things so that the payments are always
received in January.

> -Mark Bole