Deferred Income

Guidance:

Our overall guidance is to only adjust for items over £500 (unless the client or the partner expressly requests otherwise).

Step-by-Step:

The help guide from Silverfin on how to use the template itself is here

Explanation:

Deferred income is when you have billed an invoice or received a payment in your period for services that you have not yet provided at your period end.

Example:

Your client is an alarm company and their service is charged annually in advance.  Their billing runs from January to December 2020 and your year-end is February 2020.  The deferred income relates to the period from March to December 2020.