If you are a Cash Basis tax entity, then you don’t allocate this. Cash Basis = expense is incurred when it is paid. Even if you paid 4 years of Rent all at once, that would be Today’s total Rent expense.
For accrual basis, you would post this to Prepaid Expense […]
Resolution for 'Cash Basis tax issue: 'how to break down an invoice monthly when i paid a whole year?' available: Yes.
The Cash Basis tax issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the Cash Basis tax issue yourself by looking for a resolution described in the article. If it is a complex Cash Basis tax issue or you are unable to solve the issue, you may contact us by clicking here or by using other Cash Basis tax support options.
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