Receipts

Good morning! I know this has been answered before but I can't find the thread! If I am not reopening my daycare until next year, but am signing on new clients now, do I have to claim their deposits as income now or next year when I am actually providing care? Thanks!!

I think you can do it either way as long as it is consistent for auditing purposes how you are doing this and it ultimately gets claimed.

For my record keeping purposes the deposit is recorded in its 'own special place' not in the tally of fees billed and received so the deposit does not get a tax receipt until is USED cause it sits in an account until than and it than shows up on that years receipt as part of the tally of what was billed and received for that year.

If your two weeks deposit is taken for the last two weeks of care, technically it is HELD, not recieved or applied. I only apply the deposit in the tax reciept if it has been used.