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Level 1

Tracking deposits and separating labor from materials

I operate a small marine and heavy construction busines. We regualrily receive large deposits for projects months in advance of starting work. Tracking these assets has been a challenge. We often deposit them in to a seperate account, but sometimes it gets complicated and dificult to see where we stand. Our acccounts may show a high ballance however it doesnt take in to account the future liabilities (materials that need to be purchased). Does QB offer a way to track these deposits and liabilities so that the company snapshot and reports better represent where we really stand?

1 Comment
Level 15

Tracking deposits and separating labor from materials

It really depends on what you are looking at.

A refundable deposit is a liability, so it will not affect the P&L at all. Posting it to a customer deposit liability account hits the balance sheet. That shows you your liability. A report on that liability account can be customized to report on just one customer or all of them with deposits

You could also create a purchase order for the items you will need, or several PO's for that matter. While they are non posting and do not affect any financial statements, you could run a PO by customer report, customize it to report on just that customer or all of them and use it in conjunction with the balance sheet.

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