@AGMAIN wrote:
We are an S-Corp running on a cash basis. We get half down from our customers to get a job started and that money goes into a Customer Deposit that is a "other current liability". When the total due on the bill is paid in full that money is then moved out of customer deposits and into income. The accountant is telling me the money in customer deposits is considered income for the year so I need to move it to income on Dec 31st. What is the best way to move it to income and then back into customer deposits so that when the remaining payment is made on an invoice my customer deposits account will still be accurate?
Deposits are considered income if they are non-refundable. If they are refundable, it is not income but a liability until it's recognized.
