Is Customer Deposits reconciled?

Is Customer Deposits reconciled?

If you receive prepayments or deposits from your customers, it is important to monitor these balances to ensure that your customers get invoiced correctly. There are two ways to manage/monitor these balances.
  1. Reconcile the Customer Prepayments liability account. Always reconcile to a balance of zero. Uncleared transactions are unapplied prepayments. Create a Transaction Detail report to track these uncleared transactions.
  2. Create a Summary Report on this liability account, filtered to hide zero balances. When correctly applying prepayments to invoices, then customer's balance will turn zero and disappear from the report. Monitor this balance frequently to ensure that your customers get invoiced correctly.
Contact CleanBooks to get started tracking prepayments correctly.

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