https://aipb.org/community/bookkeeping-general/guarantee-payments-accrued/ American Institute of Professional Bookkeepers Discussion Board en-US Mon, 17 Aug 2026 07:56:22 +0000 wpForo 60 https://aipb.org/community/bookkeeping-general/guarantee-payments-accrued/#post-2651 Tue, 25 May 2021 16:39:43 +0000 LLC partnership.  The managing member wants to accrue the guarantee payments because he hasn't been paid yet.  But what research I have done, I am convinced that the payments can be put in a liability account but have to be recognized as an expense in the year issued as a payment even if the partner is not paid.  He insists that since he hasn't received the payment, it should not be an expense.  If it is recorded as an expense, it shows up on the Sch K-1 as income for him which he hasn't actually received.  If guaranteed payments can be accrued what is the other side of the transaction if not an expense?  Please help because this effects the 2020 financial statements and tax return which is on extension.

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