If you are operating on a cash basis (Under the cash method of accounting, income is generally recorded when you actually receive it, and expenses are generally recorded when you actually pay them), and according to how you got paid and when your employee got paid, you will recognize the income received in 2022. The employee wages paid will be taken as an expense in 2023.
So yes you will recognize income in 2022 without the expense to offset, but next year you will have an expense with no income, so it balances itself out.
@aravindreddy845
