Sometimes there's reasons to categorize money you receive as down payment, or money in advance of a job starting, as a liability instead of as income. If you show money you receive in advance as income, you may need to pay tax on that money, even though the job is not completed yet.

To categorize the funds you receive as down payments as a liability, follow the steps shown in this video:

Create the invoice from SynkedUP.

Open the invoice in QuickBooks.

Once in the invoice in QuickBooks, copy the text in the description field

Take a look and jot down or remember the amount in that line item, as we will need to enter that back in again after changing the line item category

Now, go to the Product/Service column and in that drop down, and select your category for liabilities/down payments.

Paste your description text back in the description, and type in the amount in the Rate column

Now repeat this for each line item

Now you can either Save or Save and Send the invoice to your customer

Once this invoice gets paid, you will now see these funds in your Liability account in your Balance Sheet

Now, once the job is complete, and you want to actually record these down payment funds as income:

Go back to that down payment invoice

We'll want to repeat those steps we did in Steps 3 thru 7 above, except this time we're reversing what we had done there, to record these line items as actual income.

Hit Save

Select Yes

Select OK

Now you can see the funds are no longer in liabilities

But instead they are on your Profit & Loss as income

That is how you can record money you receive in advance of a job starting as a liability and not income. Let me know if you have any questions in the chat box. Thanks and have an amazing day!

Weston