GD Accounting Glossary
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Deposit

An upfront part-payment securing work or goods — reduces risk and funds early costs; unearned revenue until delivered.

A deposit is money taken before work begins or goods ship — commonly 30 to 50 percent for custom work. It commits the client, funds early material costs, and filters out non-serious enquiries.

Accounting-wise a deposit is deferred revenue until earned. Terms should clearly state when deposits become non-refundable.

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