I offer drafting services part-time and have one major client. I use the accrual accounting method booking revenue on date of invoice. I file a Schedule C. My customer pays on 30 day terms. I had a very strong December 2022 but wasn't paid until January 2023. I still reported all calendar 2022 income (invoices) on my 2022 Schedule C. The 1099-NEC that I received from my client reported what they actually paid me in 2022. A figure less than I invoiced. I figured no problem and still reported 100% of my invoices.
Jump ahead to 2023. The 1099-NEC that I received this year includes income that I already reported in 2022. In fact, the 1099 figure exceeds my 2023 revenue (invoice) total.
How do I handle this difference? I certainly don't want to report December 2022 income a second time.
Thanks in advance.
