I request $200 and a signed contract before working with a new client (this is equivalent to approx 5 hours of work). If they are not willing to provide either/both of these, I don't wish to work with them.

I place the $200 in a 'retainer' account in QuickBooks and a savings account at the bank. I transfer the earned funds from retainer to services in QB and savings to checking at the bank when I do my end-of-month invoicing (sending a copy of the invoice to the client so they know what has been spent).

Initial deposits are fully refundable - less work performed - until spent should the relationship not work out; and that is written in the contract.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"