This article deals with the concept of Deferred Income and how to simply convert to regular, or earned, income in your bookkeeping using a journal entry. Deferred Income is simply monies you have received in advance of performing your obligations to earn that income. These obligations can be providing a service or shipping of products
Read MoreMy client, Katie, currently owns and operates a small home remodeling business. Each month, her client sends to her a $60k check payment as an upfront or prepayment for materials & labor costs. Then Katie proceeds to purchase the necessary materials and labor to continue the project for her client. As Katie’s bookkeeper, I do
Read MoreMy client, Chelsea, owns and operates a simple local fitness business that provides services for both the class/group setting and personal/one-on-one setting. Chelsea’s locations are in apartment complexes and condominiums. For the most part, Chelsea receives her revenues prior to actually performing the services; these are also known as prepayments. So, to keep things simple,
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