How to handle deposit cheques!

[lunademiel]

Hello Everyone,
I am wondering how you all handle deposit cheques. I'm new to the business.

I require all new DC families to provide two weeks deposit which goes towards their last two weeks care if they give appropriate written notice. So I have received a cheque for the required amount. Do I have to claim this as income now or later? I plan to deposit the cheque into a savings account so I have it for when the child is on their last two weeks of care.

Thanks in advance!

[Tot-Time]

To my knowledge you claim income in the year you receive it vs when you earn it I also put families' deposit cheques into a savings account for their last two weeks too, or it helps out when numbers are down.

[momplus6]

Techinally you are supposed to claim it when you get it, so yes I think say you got it this month, next year when handing out reciepts for daycare I would include that amount and then whichever year the actually leave you wouldn't claim it. Plus the parents can claim it so you don't want to get it cross referenced as not having claimed it

[Momof4]

Yes, I write the receipt for the date the deposit is received and claim it on that year's income tax and the parents get the deduction for that year too.

[lunademiel]

Thanks everyone!