What account should I use for deposits (received) in advance from clients?How to Record and Apply a Customer Deposit or Prepayment
I am using QuickBooks.
I need to know where I should deposit the payment in advance that I receive from my clients ... and how I can process the final payment to make my final invoice show "paid in full".
What accounts do I have to use?
When you receive a deposit in advance from your customers (also referred to as a customer prepayment), you have a few options. I'm going to give you a link on my site where I explain your options and how to book the entries.
Option two is the better choice if you have a limited bookkeeping background. Just keep in mind, you will need to have your accountant make an adjusting entry each year-end when you use this method.
P.S. Ana, take the time to read right to the end ... to find out where you can view a video on how to do it.