Open deposits
Every deposit with work still to deliver, each showing amount, what it applies to, and balance remaining.
Freelance finance · Deposits
Keep deposits and prepayments tied to the work they cover
Taking a 50% deposit or a prepaid block of hours is great for cash flow, but six weeks later you have to remember exactly how much of that money was already earned and how much is still owed back in delivered work. When deposits live only in your head or scattered across emails, you over-bill, under-bill, or forget to credit the deposit on the final invoice. Cash Workspace gives you one place to record each deposit with the client, amount, date, and the invoice or project it applies to.
The problem
Why upfront money gets confusing
A deposit is income you have received but not fully earned yet. Without a record tying it to specific work, you lose track of what is still prepaid.
- You take a 50% deposit, then can't remember whether the final invoice should be the balance or the full amount.
- A client prepays a 10-hour block and you have no running note of how many hours are left to deliver.
- Two projects with the same client both have deposits, and you mix up which one is covered.
- At year-end you can't tell which deposits were for work already delivered and which are still outstanding.
- A refund is owed because work was cancelled, but the original deposit isn't recorded anywhere to refund against.
The workflow
Record a deposit so its balance stays visible
Capture each deposit the moment it arrives and link it to the work, then update it as you deliver.
- 1
Record the deposit
When money lands, create a record with the client, amount received, date, and which invoice or project it applies to.
- 2
Note what it covers
Write down whether it's a percentage deposit, a prepaid hour block, or a fixed retainer toward a named deliverable.
- 3
Attach the proof
Attach the deposit invoice or the confirmation email so the amount and the agreement stay together.
- 4
Update as you deliver
As work is completed, note how much of the prepaid balance is now earned so the remaining balance is always clear.
- 5
Credit it on the final invoice
When you bill the balance, reference the deposit record so the deposit is subtracted, not billed twice.
Record structure
What to record for each deposit
A short, consistent set of fields keeps every prepaid balance traceable from receipt to delivery.
- Client
- Who paid, kept as a consistent client record so multiple deposits group together.
- Amount received
- The deposit or prepayment total and currency.
- Date received
- When the money arrived, so it lands in the right month and fiscal year.
- Applies to
- The invoice number, project tag, or deliverable the deposit is held against.
- Type
- Percentage deposit, prepaid hour block, or retainer toward named work.
- Amount earned so far
- A manual note of how much of the prepaid balance is now delivered.
- Balance remaining
- What's still prepaid and owed back as future work.
- Deposit invoice
- The deposit invoice or confirmation attached to the record.
Example setup
An example deposit setup
One way to structure prepayments inside your workspace.
Fully delivered
Deposits where the work is complete and the final invoice has credited them, kept for the record.
Prepaid hour blocks
Clients who bought hours up front, each with a note of hours bought and hours left.
Common mistakes
Mistakes to avoid
- Recording a deposit as plain income with no link to the work it covers.
- Billing the full project total on the final invoice and forgetting to subtract the deposit.
- Letting prepaid hour balances drift with no note of how many are left.
- Mixing two same-client deposits so you can't tell which project is paid up.
- Not attaching the deposit invoice, so the agreed amount is only in email.
How it helps
How Cash Workspace helps
One place for deposits
Record each deposit with client, amount, date, and what it applies to so prepaid balances live in one list.
Attach the agreement
Keep the deposit invoice or confirmation attached to its record so the amount and terms stay together.
Track the balance by hand
Note amount earned and balance remaining as you deliver, so you always see what's still prepaid.
Related
Related freelance finance workflows
Deposit and final invoices
Keep linked deposit and balance invoices reconciled per project.
Retainer billing records
Record monthly retainers and what each one covers.
Partial payment records
Track invoices paid in instalments without losing the balance.
Deposit invoice folder
Organize deposit invoices in one filing area.
All finance workflows
Browse the full Cash Workspace workflow library.
FAQ
Deposit and prepayment FAQ
- How do I track a deposit until the work is done?
- Record the deposit with the client, amount, date, and the project it applies to, then update a manual balance-remaining note as you deliver. Cash Workspace keeps all of this in one record so you can see what's still prepaid.
- Does Cash Workspace subtract the deposit from my final invoice?
- You enter the figures yourself; Cash Workspace records the deposit and links it to the project so you can reference it when you bill the balance. It does not calculate totals for you.
- Can I track prepaid hour blocks?
- Yes. Record the block as a deposit, note hours bought, and update an hours-left note as you deliver, so the remaining balance stays visible.
Organizing help — not tax, accounting, or legal guidance
Cash Workspace is a free workspace for organizing invoices, expenses, receipts, clients, and documents. This page is organizing guidance only — not tax, accounting, legal, or bookkeeping guidance. Cash Workspace does not connect to your bank, does not scan or read your receipts for you, and does not move or collect payments. Whether an expense is deductible depends on your situation, so confirm it with a qualified accountant or tax professional.
Keep every deposit tied to its work
Start a free workspace and record each deposit with the client, amount, date, and the project it covers so prepaid balances stay clear until you deliver.