Hey,
My client has a 60 month contract to perform services. The payment is received before the contract starts. so far i have set it up as an "Other Long Term Liability" account with a number of 60 and the initial payment received applied to the balance. Am i doing this correctly? No payments to pay down a balance will be applied to this balance as it is a contract for services. Since the contract is over a year he has asked if we could use a Liability account to only record the portioned earned through services completed on a given year so that the total received does not skew his accounts for the year received. any advice would be appreciated.
