ANSWERS: 2
  • If the client is accrual based, the expense is posted when the paper bill is received. If the client is cash based, the expense is posted when the bill is paid. This is Generally Accepted Accounting Principle.
  • As previously mentioned, it would depend on whether they are cash based or accrual based. If however, their request is one that is contrary to their business' basis, then they are manipulating their financials and are perpetrating a revenue / expense recognition fraud. If you determine you're being asked to report revenue and/or expenses contrary to the recognized business model for the client, you should refuse to do so. It is indeed unethical.

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