How to Approach a QuickBooks Online Clean up for Business Owners Part I

[@ShoaibRahman00]

Very Good

[@ClaudiaXperts]

Thank you! Cheers!

[@nmmultiservice]

Thank you Claudia

[@ClaudiaXperts]

You are very welcome

[@Art_Van_Delay]

Thanks. When can we expect Part 2? 🙂

[@ClaudiaXperts]

Next week

[@relaxedclub9425]

Am with you here. I usually move those to prior period adj equity acc. But someone told me I can't until the tax preparer tell's me to do so. She told me to code prior period adj as an expense and not equity, I was shocked, what is your opinion on these?

[@ClaudiaXperts]

You do not want in the Profit and Loss it will mess up your numbers for the year. The only time you will add to the Profit and Loss is if it is for the current period

[@ReneeGriego]

thank you

[@ClaudiaXperts]

You're welcome

[@Godsdaughterymap90]

Why you put it under retained earnings?

[@ClaudiaXperts]

you can create an equity account to hold that. But at the end you will need to transfer to Retained Earning since we are not changing what happed in the past. Retained Earnings is accumulated income over the years and the prior years errors will direct impact the income.