Rajeev Khandelwal's capital and enterprise experience provides a context for a deceptively simple cash question: how much of the money in an account is available to spend? A customer deposit increases the balance, but its commercial purpose may include a refund, security or a future service. The cash plan needs to preserve that distinction.
Read the obligation behind the receipt
A deposit can secure equipment, reserve capacity or support a continuing service arrangement. Its treatment depends on the actual terms and accounting advice. Operationally, the business should know what event allows the money to be applied, what could trigger repayment and which team is responsible for keeping that record accurate over time.
Model the return as well as the arrival
A growing deposit balance can make liquidity look stronger during expansion. If customers later leave or unused bookings are refunded together, that apparent strength can reverse. Considering plausible return patterns helps management avoid relying on cash that may be needed for obligations unrelated to the business's next operating expense or investment decision.
Keep customer records reconcilable
Each deposit should connect to the relevant customer, agreement and current status. Changes in service, transfers between accounts and partial refunds need a clear trail. Without it, the finance team may know the total balance while struggling to answer a specific customer's reasonable question about what the business still holds on their behalf.
Use the balance responsibly
The financing discussion becomes clearer when deposits are distinguished from earned revenue and permanent capital. That does not make them commercially unhelpful; it makes their role understandable. A durable enterprise can explain both why the cash arrived and what responsibilities remain attached to it, allowing management to make decisions with a more realistic view of available resources.
