QuickBooks for Your Business 2018-10-10T15:37:45+00:00

Prepaid services – accrual basis

It is not uncommon for customers to prepay for services. If you are on the cash basis of accounting, you record the prepayment as income.

However, if you are on the accrual basis of accounting, the prepayment is not income till the service is completed or the product is delivered.

In this instance use the workflow described in the video to account for the prepayment.

Video

 

One Comment

  1. Evelyn Ivy, CPA, MBA October 10, 2018 at 2:38 pm

    Click next

Comments are closed.