(Calgary, AB, Canada)
Create A Customized Report To Track Customer Deposits
I charge an initial deposit for new clients which is an advance payment for services. This deposit is applied against hours charged based on an hourly fee.
I am not sure what the best method to record this payment would be. I don't believe recording it as revenue (DR Cash, CR Revenue Account) is correct as the money has not been earned until the services are performed. Or should I set up a liability account?
In addition, I don't know how to structure the GST. I don't believe you charge GST on a deposit, rather you show it on the invoice/statement and take it off as work is performed.
What paperwork would I provide to the client initially? A receipt or an invoice showing the amount of the deposit.
I don't know if Simply Accounting (now Sage) issues receipts, rather invoices. Then periodically I would like to issue client an invoice to show hours billed and balance on deposit.
HELP!
I was also trying to find my last question I submitted last week on your forum but was unsuccessful.
Comments for How to Record and Track Deposits
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