handling pre-paid expenses

nccchurch · Post by **nccchurch** » Fri Sep 28, 2012 2:26 pm

We collect a wedding deposit which I put in an income account. Often we close our fiscal year before we have any charges against that deposit. Do I move it to an asset account (like pre-paid expenses) 01.1982 or an accrued account (in the 2000 range) and will it be there after I close the year?

JohnDMeyers · Post by **JohnDMeyers** » Fri Sep 28, 2012 5:02 pm

I would choose to move it to an asset account.

If it is in your checking account, you could move it to a sub-account of checking, so that it can just sit in that account.

NeilZ · Post by **NeilZ** » Fri Sep 28, 2012 6:18 pm

What we do is put it in a Liability account, as it could be refunded prior to the wedding, and then move it to income once the ceremony is completed.

User Support Forum

handling pre-paid expenses

handling pre-paid expenses

Re: handling pre-paid expenses

Re: handling pre-paid expenses