Easy Tech TutsHow to Record Customer Deposits in QuickBooks Online Easily 2026
By Impran M N
Accepting deposits from clients before starting a project is common for service-based businesses, but recording them correctly matters for accurate books. This guide covers how to record customer deposits in QuickBooks Online step by step.
01Access the deposits feature
Navigate to the area of QuickBooks Online where customer payments and deposits are recorded.
02Record the deposit
Enter the deposit amount against the correct customer, linking it to the relevant invoice or project if applicable.
03Follow best practices
Keep deposits clearly labeled so they're easy to apply against future invoices without confusion.
04Avoid common mistakes
Watch out for applying a deposit to the wrong invoice or forgetting to reconcile it once the final payment comes in.
Frequently asked questions
How do I apply a deposit to a final invoice?
Once the project or sale is complete, you can apply the recorded deposit as a credit against the final invoice amount.
Can deposits be refunded if a project is canceled?
Yes, QuickBooks Online allows you to process a refund against a recorded deposit if the transaction needs to be reversed.
Is recording a deposit different from recording a full payment?
Yes, a deposit represents a partial payment received in advance, while a full payment settles the entire invoice amount.
Can this process be automated?
Automation features and integrations can help streamline recording deposits, especially for businesses handling frequent partial payments.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
