You book a corporate gala in March. The event isn't until September, but the client pays a 50% deposit up front. That deposit just hit your account, so here's the question: is it revenue today, or is it money you haven't earned yet?
That question is the whole reason for a new setting in Invoices. Before we move your account to the new version, you'll tell LASSO how you want deposit invoices to behave: recognize it as revenue when they're saved, or held as deferred revenue until the event is delivered. Here's what each option means and how to pick the one that matches your books.
The Two Ways to Treat a Deposit
Recognize it as revenue when it's saved. The deposit records as revenue based on the deposit invoice date. Your March books show the income in March, even though the event runs in September. This is a simpler approach, and it lines up closely with cash-basis bookkeeping, where you record money when it actually moves.
Hold it as deferred revenue until the event happens. The deposit posts as a liability called deferred revenue—you'll also hear it called unearned revenue. It's money you've collected but haven't earned yet, because you still owe the customer the event. When the event is delivered in September, that deferred balance converts into earned revenue. This is the accrual-basis approach, and it's what GAAP expects.
Same deposit, same dollars. The only difference is when the money shows up as earned income, and that timing is what ripples through your monthly reports, your tax picture, and anything a lender, investor, or auditor looks at.
Which One Fits You
This depends on how you already keep your books, and your accountant is the best person to confirm it. A few honest signals:
If you report on a cash basis and treat deposits as non-refundable once a booking is locked, recognizing revenue on deposit invoices usually keeps LASSO in step with your existing records.
If you report on an accrual basis, get audited, work with lenders or investors, or hold refundable deposits, deferred revenue gives a truer picture of what you've actually earned versus what you still owe.
Picking the wrong setting won't lose your money, but it will land income in the wrong period. That can throw off your monthly numbers and your tax timing, and it can make your reports tell a story that isn't quite true. That's why we want you to set this deliberately instead of inheriting a default.
If You Sync Invoices to an Outside Accounting System
If your Invoices data flows into a separate accounting platform, the deposit treatment you choose needs to carry over cleanly to that system. The data sent on the invoice webhook will be impacted according to this deposit deferred revenue setting. Once you make your decision, you won’t need to do anything extra for that part.
What to Do Now
Talk to your accountant or finance team about which treatment matches how you keep your books.
Have an event financials admin set your deposit treatment in Company Settings -> Quotes and Invoices before migrating to the new version.
That's it. We'll handle the move to the new Invoices from there.
One honest note: While we're sharp on event operations, we're not your accountant or your tax advisor. Use this guide to have the right conversation with your finance team and let them make the final call.
Questions? Reach your LASSO Customer Success Manager, and we'll walk you through it. When you're ready, an event financials admin can set your deposit treatment in Company Settings -> Quotes and Invoices.