<p>It sounds as if the company uses accrual basis (you reference an AP department), not cash basis for accounting purposes. Some smaller accrual basis businesses are allowed to report cash basis for tax purposes. Regardless of the method for tax purposes, since the check is in hand, the income is rec’d and cannot be properly moved to a later fiscal or tax year, unless it is unearned income.</p>
<p>[If he were requesting holding of a specific check deposit and that check was rec’d for services not yet provided, it is possible he just did not want to book the unearned income (liability) on his balance sheet. But he isn’t specific, so that’s not it.]</p>
<p>Bottom line…it is odd behavior. Maybe the guy is a goofball and thinks he can defer income taxes by holding the checks as others have suggested. When I was in the college, the kids who flunked out of Accounting changed their majors to Finance/Banking…well before they got to the Advanced Tax courses. :-)</p>