A customer deposit accounting review should establish what the company still owes the customer before an advance receipt is treated as earned sales. Keep the agreement, payment and delivery evidence together. The date money reaches the bank does not by itself settle revenue recognition or the separate GST question.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Establish what the payment covers

Identify the customer, order, amount and currency. Check whether the receipt is an advance for a future supply, a refundable deposit or another arrangement. A label chosen in the invoicing system is not a substitute for the actual terms.

Record what had been delivered at the reporting date. Keep partial completion distinct from a promise to perform later and obtain confirmation from the operational owner.

Compare the accounting entries

Find the bank receipt and any invoice, liability or sales entry already recorded. Ask the accountant to review the applicable reporting treatment. Do not reverse the bank transaction simply because a different ledger classification may be needed.

Check whether the balance was already applied to a later invoice. A deposit should not become another customer payment when the final sale is processed.

Example: work starts next month

A customer pays before the company has carried out the agreed service. Give the accountant the scope, dates and refund terms for the period-end review. This checklist does not prescribe one revenue rule for every contract; the outstanding obligation needs assessment.

Retain the reviewed outcome

Keep the approved classification, later invoice allocation and any refund evidence together. Ask about GST timing and supporting documents separately. A decision about accounting revenue does not automatically decide when GST must be accounted for on the receipt.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.