Would paid-ahead accounts be a contra-asset?
IOW, I owe work in the amount of $X to customer because they have paid for it, and I will perform it in several increments over the next month.
- posted
16 years ago
Contra-asset
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- posted
16 years ago
"Dan S." wrote
Technically it's a liability until you complete the work.
How you would actually record it for tax purposes would be based on your accounting method (cash or accrual) and the specifics of any contract you have for the work.