If you are using journal entries with our QuickBooks integration, you will see the option to select a Carried Balance Account in Settings > Connections. This account is used for settlements or payouts which span multiple months.
taxomate will split settlements that span multiple months to ensure your financial accounts properly record the transactions in the month in which the transaction took place.
For example, if you have a settlement that contains transactions from September 24th to October 4th, we will send two journal entries to QuickBooks. One journal entry for transactions from September 24th to September 30th and then another entry for transactions from October 1st to October 4th.
The journal entry with transactions from September 24th to September 30th will have a debit to the Carried Balances account and the October 1st to October 4th entry will have a credit to the Carried Balances account.
Instead of having to match both journal entries to your bank payment, the use of the carried balances account to match one journal entry or deposit to the corresponding bank payment.