Work snippet 17 / 34Payments + accounting

Customer deposits, stage payments and refunds from Jobber into QuickBooks Online

How I'd approach deposits for a premium renovation company on Jobber and QuickBooks Online, so a deposit is a liability until it is applied, refunds are booked properly and the deposits held on open jobs tie to Jobber.

Work snippet with example figures.

Area
Payments + accounting
Tools
Jobber · QuickBooks Online
Typical scope
US$1,800–3,200
Timeline
About 5 weeks · 4 fixed milestones

01Context

A premium outdoor living and renovation company with several locations. Jobs run for weeks, are paid in stages after a deposit, and are sold and scheduled in Jobber. The books are in QuickBooks Online and the bookkeeper reconciles weekly.

The systems in play

In the example the company takes a deposit of 25% when a quote is approved, applies it to the stage invoices, and sometimes refunds all or part of it. It also needs the deposits already held on open jobs to move across correctly.

Table 1Who uses what
SystemWhat it does for the business
JobberQuotes, jobs, stage invoices and card payments, including the deposit taken at approval.
QuickBooks OnlineThe ledger, customers, invoices, payments, credit memos and refunds.
Card processorTakes the payment, keeps its fee and pays out a net amount to the bank.
Sales coordinatorHandles approvals, deposits and customer questions about what has been paid.
BookkeeperReconciles weekly and answers the customer when a balance looks wrong.

02Problem

What the owner sees

  1. Deposits that show up as income the day they are paid
  2. Customer balances that are wrong after a refund
  3. No list of how much deposit money is held on open jobs
  4. A year-end where nobody can explain the deposits liability

A deposit is the customer’s money until the work is done. If it is booked as income, profit is overstated and the first stage invoice looks overpaid or unpaid. Refunds make it worse, because they reverse a payment that was never booked as a liability.

Table 2Where the drift starts
Everyday situationWhat goes wrong
Deposit synced as a saleIncome is booked on the day the quote is approved, before any work is done
Deposit applied on the final invoiceThe invoice shows paid, but the payment sits on another document in QuickBooks Online
Refund after cancellationThe refund is entered as an expense or as a negative sale, and the customer balance is wrong
Non-refundable part of a depositKept by the company with no entry that says why
Deposit moved to another jobTwo customers or two jobs end up with the wrong balance
Existing depositsOpen jobs already carry deposits that were never booked as a liability

03Approach

Four steps, in this order. Each one ends with a result that is checked.

  1. LookA read-only review of 12 months of Jobber deposits, payments and refunds against QuickBooks Online. Nothing is changed.
  2. Agree the rulesHow a deposit is held, applied, kept or refunded, and which accounts and items carry each step, are written down.
  3. Set up and connectA liability account, a deposit item and the mapping are set up. Existing deposits are loaded as liabilities, job by job.
  4. CheckA liability tie-out compares QuickBooks Online to Jobber’s unapplied deposits, every week.
Table 3Deposit rules agreed in writing (example settings)
ItemExample setting
Deposit receivedRecorded as a customer deposit in a liability account, not as income
Deposit appliedApplied against the first stage invoice, so the invoice and the liability both reduce
Refund before work startsA refund payment against the deposit, in full, to the same card or account
Non-refundable partPer the signed terms: moved from the liability to a cancellation fee account, with a note
Refund after variation or reduced scopeA credit memo for the amount, then a refund, never a negative sale
Processing feesRecorded as a cost when the payout arrives and not reversed by a refund unless the processor returns them
Deposit moved to another jobA written approval, then a journal between the two customer deposit balances
ApprovalA manager approves any refund above an agreed amount

04What the setup includes

What the setup includes, and why each piece is there. The detail of how it is configured is agreed in the scoping call.

Show the setup, layer by layer
Table 4The setup, layer by layer
LayerWhat is set up and why
Liability accountA customer deposits account in QuickBooks Online, so held money has a home and its balance is a check in itself.
Deposit itemA service item mapped to that account, so a deposit never lands in income.
Sync mappingJobber deposit and stage invoice mapped to the deposit item and the revenue items, tested on one job for each tax rate.
Application stepThe deposit is applied to the first stage invoice. Applied and unapplied deposits are visible per job.
Refund and credit memo flowA written sequence for a refund: credit memo, refund payment, note, and the matching processor entry.
Opening depositsDeposits already held on open jobs loaded one by one as liabilities, tied to the bank and to Jobber before anything else is changed.
Weekly tie-outThe deposits liability in QuickBooks Online compared to Jobber’s unapplied deposits per job, with a list of differences.
Approval and auditRefunds above the limit need a manager. Each carries a user, a date and the signed terms it follows.

How the data moves

  1. Quote approved
  2. Deposit taken
  3. Customer deposit liability
  4. Stage invoice issued
  5. Deposit applied
  6. Refund or fee retained if needed
  7. Weekly tie-out

05Edge cases

These are agreed with the sales coordinator and the bookkeeper and tested on closed jobs first.

Table 5Edge cases and how each is handled
SituationHow it is handled
Deposit larger than the first stage invoiceApplied up to the invoice total. The remainder stays in the liability for the next stage.
Deposit and final payment on different cardsEach payment keeps its own record, so a refund goes back to the card that paid
Cancellation after the depositThe fee under the terms moves to the fee account. The rest is refunded with a credit memo and a note.
Customer pays the deposit twiceThe second payment is refunded the same day and the pair is logged
Deposit taken on a quote that later changesThe deposit stays at the amount paid. The next invoice shows the difference.
Refund after the payout has arrivedRefunded from the processor and recorded against the credit memo, so the next payout is explained
Refund after the sales tax return period closesHandled in the current period with a note, as agreed with the accountant
Deposit moved between jobsJournal between the two deposit balances, approved in writing
Job never goes ahead and the deposit is unclaimedListed after an agreed number of days for the manager to decide, never written off automatically
Customer with several jobsDeposits stay per job, so a refund cannot use another job’s money

06Worked example

The tables below use one job and one cancellation with example figures. They show the shape of the checks, not a client result.

Table 6One job with a 25% deposit (example data, US$)
EventInvoicedCash receivedDeposit movementDeposit held
Quote approved, deposit taken12,150.0012,150.0012,150.00
Stage 1 invoice issued (30%)14,580.0012,150.00
Deposit applied to stage 1-12,150.000.00
Stage 1 balance paid2,430.000.00
Stage 2 invoice issued (40%) and paid19,440.0019,440.000.00
Stage 3 invoice issued (30%) and paid14,580.0014,580.000.00
Total invoiced and total received48,600.0048,600.00
Table 7One cancellation after the deposit (example data, US$)
StepAmountHow it is booked
Deposit received12,150.00Customer deposits (liability)
Cancellation fee under the signed terms-1,500.00Moved from the liability to cancellation fees (income)
Refund to the customer10,650.00Credit memo, then refund payment
Deposits liability after the refund0.00Cleared
Table 8Weekly tie-out: deposits held on open jobs (example data, US$)
JobJobber, unappliedQuickBooks Online liabilityDifference
J-710212,150.0012,150.000.00
J-71188,400.008,400.000.00
J-713115,200.0015,200.000.00
J-71406,750.006,750.000.00
J-71559,900.009,900.000.00
J-716321,000.0021,000.000.00
J-71704,500.004,500.000.00
J-718811,800.0011,800.000.00
Total, 8 jobs89,700.0089,700.000.00

07How the result is checked

Two checks matter most: the deposits liability must equal what Jobber says is unapplied, and no deposit may ever appear in income before it is applied or kept under the terms.

Table 9Checks and pass conditions
CheckHowPass condition
Liability tie-outQuickBooks Online customer deposits compared to Jobber unapplied deposits, per jobEqual, or each difference is on the exceptions list with an owner
No deposit in incomeA profit and loss run on a day when only deposits were takenIncome is unchanged by deposits
Test job per tax rateA deposit, a stage invoice and an application for each rateEach ties to the cent and carries the right tax code
Refund testA cancellation with a fee and a refund on a test jobLiability is zero, fee booked once, customer balance correct
Opening depositsLoaded balances compared to Jobber and to the bankEqual before the first weekly tie-out
Processor payoutsEach payout checked to its payments, fees and refundsBank line equals the payout, with fees booked as a cost
ApprovalsRefunds above the limitEach has a named approver and the signed terms attached

08Scope and milestones

A fixed scope agreed in writing before anything starts. Each milestone is paid when you sign off its deliverable.

Table 10Scope: what a project like this covers
AreaIncluded
AuditRead-only review of 12 months of Jobber deposits, payments and refunds against QuickBooks Online, a 45-minute call, written findings and a fixed quote
RulesDeposit, application, fee and refund rules in writing, approved by the bookkeeper and the manager
QuickBooks Online set-upLiability account, deposit item, fee account and mapping, tested on one job per tax rate
Opening depositsDeposits on open jobs loaded and tied to Jobber and the bank
Refund flowA written procedure and test cases for full and partial refunds
Weekly tie-outA tie-out report and an exceptions list with owners
ApprovalsRefund limits and an approval log
HandoverWritten SOPs, a recorded handover video and files you own, plus 14 days of fixes after go-live
Not includedTax filing and statutory returns.
Also outside the scopeChanging the signed customer terms. Chargeback disputes with the card processor. Moving to a different accounting package. Software subscriptions (billed to you by the vendors).
Table 11Fixed milestones
MilestoneDeliverableTimingShare
M1 Audit and rulesFindings, a fixed quote and the deposit rules in writingWeek 120%
M2 Set-upLiability account, item and mapping working on test jobsWeek 230%
M3 Opening deposits and refundsDeposits loaded and tied, refund flow testedWeeks 3 to 435%
M4 Tie-out and handoverWeekly tie-out running, SOPs, handover video, 14 days of fixesWeek 4 to 515%

Typical scope for this kind of project: US$1,800–3,200

About 5 weeks across 4 fixed milestones. The Systems Audit (US$300, fixed) comes first and confirms the scope.

Describe what is going wrong between your job system and your books, and I'll say where I'd look first.

Send a short note through the form on the home page. I will reply with where I would start, and whether the US$300 Systems Audit is the right first step.

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