Prepaid Expenses

[CCCESQ]

The company I work for issued me too much money for reimbursable expenses in 2022.  When the error was caught, they offset some of my 2023 reimbursable expenses with that overage.  Does this go on the balance sheet as a prepaid expense?  How do I account for this with my remibursable expenses on my tax return? What if I have another overage in 2023?

I am preparing my S Corp. taxes and am using cash basis accounting.

[RobertB4444]

As a cash basis taxpayer what that company does for it's accounting doesn't really matter to you.  Any money that you received goes into income as soon as you receive it.  Any expenses that you have become expenses as soon as you pay them.  So you enter all of the reimbursements that you receive and you enter all of the expenses that you had to offset those reimbursements and you pay tax on the profits.

@CCCESQ