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Handling deposits
How do others go about dealing with deposits?
I’m not sure if the way I do it is the right or best way? I issue a receipt when a deposit is paid but do not raise an invoice at this stage. Once the job is completed I raise an invoice for the full amount and the client pays the invoice amount less his deposit.
Or would it be better to raise an invoice when the deposit is paid – then once the job is completed invoice the balance?
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11 Replies
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I do the same as you Phill. I only issue a reciept for the deposit if I am asked. If they pay the deposit by cheque their cheque stub is their reciept. Invoice in full on completion. Why double the paperwork.
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I raise an invoice and apply part payment against this. When the job is complete, invoice and statement printed and given to customer for the balance due……….
I find this keeps ALL of my financial transactions in 1 place and makes financial planning easier. Remaining customer balances are available at the click of a button (all done in quickbooks)
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we do the same as you Phill, give a receipt for the deposit, saying deposit received against total cost of x
then issue an invoice for payment on completion.
We do not do statements, its should not be necasary and only creates additional work.peter
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The only reason I do a statement on a deposited payment is that it does not show on the invoice as a part payment on Quickbooks. Statement is only required a few times and takes 5 secs to print…
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I was thinking more of the extra paper and postage costs to issue a statement, it all adds up 😀
but having said that, hardly any significant cost to the environment, when we are flying prawns from china 😉
Peter
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I do it same as you Phil deposit (hand written receipt if required) invoice & balance due on completion for most clients except the regulars
John
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"when we are flying prawns from china"
Did you know that most of them originly come from Scotland, then shipped around the world Then they are imported back to the UK.
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my wife looks after my deposits 🙄
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quote George Elsmore:my wife looks after my deposits 🙄Bucket, quick :vomit:
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We used to use MYOB and when rasing an invoice there was a box for any monies recieved so far, so we used to enter the deposit taken in there and it all balanced out perfectly.
Regards
Russell.
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quote Phill:Or would it be better to raise an invoice when the deposit is paid – then once the job is completed invoice the balance?That what we do – we treat it as a job in its own right, im sure accounting systems may want to do this differently but we find this way a lot easier, if you issue receipts etc its a different process and adds complications all depends which is easier for the system you use, but we find treating it as a job is simple and no issues or complications at all.
Surely not issuing an invoice may complicate your clients books too though? if they make a payment and get a receipt then an invoice for the full amount and pays part of it? surely more difficult to balance books and see what payment paid what?
Nigel
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