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C
CPontrella
June 11, 2021
Question

How to effectively account for large sums of deferred revenue?

  • June 11, 2021
  • 1 reply
  • 0 views

I run an education company that takes fees for programs months before the programs run. For example, we start accepting fees for summer camps as early as february, but don't provide the service until July/August. These are processed through stripe as individual transactions.

 

Should I set up a new account as 'other liabilities' for this deferred revenue and then manually move things over once realizd? Journal entries seem out of the question, as we are talking about a couple hundred transactions.

1 reply

T
Tammy_H
June 12, 2021

Hi CPontrella,

 

Thanks for reaching out with your question. It's fantastic to hear from new members. QuickBooks Online does give you the option to create delayed charges. I can provide you with the information, and you can decide if this will work for you.

 

A delayed charge can be created and turned into an invoice after. Here's the article: How to Create Delayed Charge Invoices in QuickBooks.

 

If you're still unsure, I suggest that you contact an Accountant. They'll be able to provide you with the correct information for your business. If you don't have an accountant, you can always find one familiar with QuickBooks through this link: Find an Accountant.

 

Let me know if you have any questions. Take care.

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