USA How to account for past year revenue received

[Tianyu]

Hi I receive 65k from a customer in 2017 for 2016's work. past accountant forgot to book the revenue in 2016. How do i treat it in 2017. thank you

 

[Drmdcpa]

Hi I receive 65k from a customer in 2017 for 2016's work. past accountant forgot to book the revenue in 2016. How do i treat it in 2017. thank you

If you are on a cash basis, income is only recognized when recieved. If you are an accrual basis, your prior prepared erred. You would then have to consider amending the prior return or simply treat the income as current year income.

 

[ESSAM]

if accrual basis , best way to treat it as income of this year as it's mistake from account team that they didn't record on the previous year which you Provide the service