Dear James Tuan T,

If I convert the estimate into an invoice and add the deposit amount, the invoice date would need to be altered upon the delivery of the goods, to follow the accrual accounting method. This is not only inefficient, but generally not recommended because reporting is inaccurate. 

To work around this issue, I've created journal entries increasing the cash account (asset) for the deposits, and increased the deferred revenue (liability) accounts, however-- the issue now is that quickbooks reports indicates the business is running at a loss-- which is also inaccurate. The deposits are not recognized as deposits for the invoices, and liability accounts have grown. 

I would sincerely appreciate any advice you can offer.