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quincytrapping-g
Level 1

What is the best way to charge a customer a deposit for an equipment rental and then bill them for the total days rented/services at the end of their service?

I have started a nuisance animal trapping business. I would like to receive a deposit for the trap/cage when I leave it with a customer in case it isn't returned or is damaged, and at the end of their usage, invoice them for the total cost of the rental/service. Do I need to create an estimate with a deposit or can I bill them partially for a deposit and change the invoice later to include the rental fees? What is the best way to go about this?
2 Comments 2
Fiat Lux - ASIA
Level 15

What is the best way to charge a customer a deposit for an equipment rental and then bill them for the total days rented/services at the end of their service?

Do you have a QB Payment account or a 3rd party merchant service account?

GlinetteC
Moderator

What is the best way to charge a customer a deposit for an equipment rental and then bill them for the total days rented/services at the end of their service?

Hello there, quincytrapping-g.

 

You can record a deposit or retainer in QuickBooks Online. But, before doing the process, I would suggest consulting with your account to make sure your books are accurate. I'll walk you through how to accomplish this.

 

To start with, create a liability account to track the amount of the retainer you received from your customer. Let me walk you through the steps:

 

  1. Go to the Gear icon at the top.
  2. Under Your Company, choose Chart of Accounts.
  3. Select New.
  4. In the Account Type drop-down, choose Other Current Liabilities.
  5. In the Detail Type drop-down, select Trust Accounts - Liabilities.
  6. Enter the account’s name or leave the account name as is.
  7. Click on Save and close.

Then, create a retainer item you can use to receive the deposit or retainer from your customer. For the detailed instructions, refer to the steps below:

  1. Go to the Gear icon at the top.
  2. Under lists, choose Products and Services.
  3. Then select New.
  4. On the Product/Service information window, select Service.
  5. Enter a name for the product or service item.
  6. From the Income Account drop-down, choose Trust Liability Account.
  7. Click on Save and Close.

 

You can check this article for detailed instructions: Record a retainer or deposit.

 

Keep me posted if you have any additional questions. I'll be right here to help.

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