Can prior year expenses by added to this years books?

Can prior year expenses by added to this years books?

Typically, only expenses incurred in the year you are bookkeeping for can be included. However, some prior-year expenses may be deducted as start-up costs. A start-up cost is recoverable if it meets both of the following requirements:
  1. It's a cost a business could deduct if they paid or incurred it to operate an existing active trade or business, in the same field as the one the business entered into.
  2. It's a cost a business pays or incurs before the day their active trade or business begins.
Keep in mind there are limitations to this deduction and not all expenses qualify. If you have questions about start-up costs, speak to your tax accountant!

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