USA Accrual to Cash conversion at EOY

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Hello Everyone,

I have a problem I've been trying to figure out for a week now; i'm sure there is an easy answer but i just can't see it.

Background:
We a small company that keeps financials in the accrual method. But for our tax return, we file on the cash basis.

Problem:
I normally convert the accrual financials to cash basis by reversing out end of year balances in our payables/accruals accounts.
This of course affects net income and what rolls into retained earnings.

Assuming I did this for the year 2018, and now I have to do it for 2019, how do I factor in the cash/accrual adjustments made in 2018 for 2019 so that the retained earnings in my balance sheet properly rolls forward on the cash basis?

I'm sure there is a simple answer but I just can't see it....

Thanks in advance
 

kirby

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Retained Earnings on Cash Basis for 2019
Should be
Accrual Basis R/E for 2019 adjusted by 2018 and 2019 accrual to cash income adjustments.
 

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