NPVAdvisor : Sure, you should certainly ask some questions
NPVAdvisor : For one thing, out in your engagement agreement (and any deliverable -taxes, etc) that your wrok is completely dependent on information provided by the client NPVAdvisor : but, probably stating the obvious here, good due diligence would be to ask what the items are and check against whether allowable business expenses
NPVAdvisor : could be simply obvious tax evsion
NPVAdvisor : if you're doing taxes CERTAINLY document that you asked, (software note, cover letter for physical files)
Customer: We've had trouble with this client so that's why I'm asking Just Answer. I'm not an accountant but deal with P&L's frequently and have never seen a negative entry like this. I'm inclined to believe the real "Net Income" is $88,601.
NPVAdvisor : That would be my intuition as well
NPVAdvisor : Again, however, best practice would be to ASK, get it documented, and then if they won't answer (or give an answer that would lead a reasonable persone to thing they'e evading) you have ANOTHER decision to make
NPVAdvisor : Are there outside investors involved?
NPVAdvisor : or is this single member?
Customer: One other owner in the LLC for a total of 2 owners. I appreciate your feedback. Before I start asking questions,I wanted to be as sure as possible so I don't make a fool of myself (although I've done that before so it wouldn't be all that bad lol).
NPVAdvisor : Haven't we all!
NPVAdvisor : But really, this is so obvious that I sould even see it being a test of some sort ... to see if you DO ask
NPVAdvisor : "could" ... sorry for the typos
NPVAdvisor : a negative Net Other income should be noted
Customer: Hear that! Thanks for the assistance - appreciate it. At this point I have all I need to proceed. Thanks again.
NPVAdvisor : QUick question, is this cash or accrual?
NPVAdvisor : If the report is cash - only paid invoices are reported along with the bills you have paid. If it is accrual, invoiced billed (but not paid) are included in the report.
NPVAdvisor : Just ba thought
Customer: It's labele Cash Basis which would be correct in this case since it's a real estate company.
NPVAdvisor : then yes, you need to ask, Good accounting would be to footnote it
Customer: OK - thanks again
NPVAdvisor : You're welcome
Customer: signing off now
NPVAdvisor : If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better. That's the only way they will pay us here. HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question
NPVAdvisor : Have a good one!
Customer: U 2 and will do