Prepaid Expenses in cash basis in QB 2011

[Angie]

Hi,
We have prepaid our general Liability insurance for the year and have overpaid them as well. They have not sent us a refund, but instead a monthly bill showing the credit each month.
We have set up a "Prepaid Expense Account", with a sub account for "Prepaid Liability" They are both listed (type) as "Other Current Asset" with the tax line also being "Other Current Asset"

Please tell me the steps to get this to not be on our cash basis statements (B/S) but to stay on our Accrual Basis statements!

Any help on this would be GREATLY appreciated!!!!
PLEASE HELP!!

Thank You!

[FlagshipTech]

I suggest talking to your CPA or tax preparer about how to handle this.

The truth is that you've written the check in this fiscal year, so unless some cash changes hands the amount you prepaid still "is" a cash expense as far as the IRS is concerned.

Mark Wilsdorf
Flagship Technologies, Inc.
QuickBooks™ Add-Ons and Solutions You Can Use
http://www.goflagship.com

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expense to Cost Center and Profit Center classes, in ManagePLUS Gold for QuickBooks...
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