I am writing to bring to your attention a potential issue with the General Ledger (GL) report generated through the Write-up service for one of my clients. I recently requested a GL report for the entire year of 2023, focusing on a specific GL account. Upon reviewing the report, I noticed that some of the disbursements and checks were listed with dates that are subsequent to 2023, specifically reflecting transactions from 2024.

After filing a support ticket to inquire about this anomaly, I was informed that the report reflects the "Bank Date," i.e., the date the payment cleared the bank, rather than the actual "Transaction Date" when the transaction occurred. For example, if a client issued check number 1020 to Office Max for $5,000 on 12/28/2023, this transaction should be recorded in the 2023 financials based on the "Cut-Off" date principle, which records the transaction in the period it was incurred, regardless of when it was cashed by the recipient.

However, in a scenario where Office Max cashed the check on January 18, 2024, and I printed the report on January 10, 2024, the report would not reflect this transaction if it is based on the "Bank Date" because the check had not cleared by that time. This results in the report providing incomplete information since it does not include all transactions that occurred within the requested period.

It is important to note that "write-up" is a term used specifically for services provided by external accountants, not internal accountants. Since the Write-up service is typically used by external accountants to process transactions "after-the-fact" for clients who do not manage their day-to-day accounting internally, it is critical that the reports accurately reflect the "Transaction Date" to ensure completeness and accuracy in financial reporting and tax preparation.  Write-up service is very different than what an internal accountant would do, since we don't process the payments to vendors, the invoices to clients, or any task that are more of a day-to-day.

This situation presents both an accounting and a tax preparation issue:

• Accounting Issue: If the report is requested before the check is cashed by the vendor, the report will be incomplete, only listing transactions that have cleared the bank. This does not align with standard accounting practices where the "Transaction Date" should be used to accurately reflect all transactions within the specified period.

• Tax Preparation Issue: When preparing the tax return, the expectation is that the report reflects a complete set of transactions as of the year-end (2023). However, if the report is based on the "Bank Date," it will not include transactions that have not yet cleared the bank but are still relevant for the year being reported, potentially leading to inaccurate tax filings.

I kindly request that the development team investigate this issue and consider modifying the report generation logic to reflect the "Transaction Date" rather than the "Bank Date." This adjustment would ensure that the reports are complete and align with standard accounting and tax preparation practices.

Thank you for your attention to this matter. I look forward to your prompt response and a potential resolution.