Hi,

I wonder, what is the best accounting method to keep your books? cash or accrual?

For cash, you have to record income when you receive the payment. Which is could be 2 weeks before the wedding.

For accrual, you record the income when you deliver goods or services (shoot the wedding). It is tricky, since you shoot the wedding (deliver services) and then you deliver goods (albums, etc) at some point after the wedding. So, when do you suppose to record the income, at the date of wedding?

Looks like the cash accounting is the best for photographers, since you could be booked 6-12 month before the actual wedding. It makes sense to record income when you receive the final payment. Actually, here is the question: How do you record it in Quickbooks. For example, I create pending invoice at the time when they sign the contract and I receive a retainer. Is there a way to record the actual payment for the peding invoice with back date at the time I get the final payment? I hope I didn't confuse you too much.