Assign every deposit to its sold job
Record the customer cash beside the materials, labor, and permits it is expected to fund.
Operating principle
Deposits Are Job Capital
Treat customer deposits as funds assigned to the work that created them.
The operating reality
A deposit is not free operating cash. It is the first funding assigned to fulfill a specific promise.
The blind spot
Where operators lose the number
When deposits land in one account without job-level commitments, a strong sales week can look like excess cash. Spending it on overhead or an older job creates a future supplier and payroll obligation with no funding attached.
The math
Put the belief in dollars
A fence customer pays a $4,000 deposit. Posts, panels, gates, delivery, and early labor require $4,600 before the next draw. Coverage is $4,000 ÷ $4,600 = 87%, leaving a $600 funding gap.
The example is illustrative, but the discipline is not: use the complete cost and cash inputs from your own business before making the next decision.
How CloseDay applies it
Turn the rule into an operating workflow
CloseDay associates the deposit with the sold job, displays upfront commitments, and supports supplier payout and material funding. The operator sees the gap before ordering rather than discovering it at the bank balance.
- Capture the source and responsible stage once.
- Move routine work automatically and surface exceptions for a person.
- Judge the outcome at the paying customer and funded job—not at the activity count.
In the trades
The same rule shows up differently by trade
The operating principle stays consistent; qualification, measurement, buying cycles, and cash commitments change by trade.
Keep reading
Related CloseDay principles
These principles reinforce the same operating decision from a different angle.
Simple dollar example
Make the economics visible.
A fence customer pays a $4,000 deposit. Posts, panels, gates, delivery, and early labor require $4,600 before the next draw. Coverage is $4,000 ÷ $4,600 = 87%, leaving a $600 funding gap.
Illustrative only. Use your own numbers and assumptions; this is not financial advice or a guaranteed forecast.
Run your numbers
Deposit Coverage Calculator
Use your own operating numbers to turn this principle into a visible baseline.
Open the calculatorWhat changes
One clear rule. One accountable next action.
Resolve the gap before ordering
Compare the deposit with every commitment due before the next draw and change terms or funding before cash leaves.
Frequently asked questions
Practical buying questions
How should an operator start using “Deposits Are Job Capital”?
Choose one recent month or one completed job, gather the actual inputs, and calculate the baseline before changing the workflow. A visible baseline gives the team a number to improve.
Does CloseDay replace operator judgment?
No. CloseDay connects repeatable stages and makes the accountable numbers visible. Scope exceptions, pricing judgment, customer trust, and trade risk stay with the operator.
Is the dollar example a benchmark?
No. It is an illustration of the calculation. Your labor, materials, market, close rate, and acquisition costs determine the real answer.
Related reading
Keep following the operating system.
Want these numbers connected from lead to paying customer?
See how CloseDay would apply the workflow to your trade and market.
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