Tag Archives: prepayments

Services Prepayments from Customers

This article deals with getting prepayments for services to be performed at a later date. If you are receiving monies from customers, but have not yet actually performed the services, then these monies are actually a liability to be satisfied in the form of work later on. For Example: An entity pays you $3000 up

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Prepayments and Deferred Income

My 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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