What do YOU do when someone cancels the order for a cake?
Like what do you do when it's two weeks ahead? One week? 2 or 3 days?

Many people require a non-refundable deposit (often 50%, sometimes less) in order to book a cake (although, depending on circumstances, the owner *may* allow that deposit to be transferred to a future order). Most require the cake to be paid in full at least a week in advance, sometimes 2 or 3 weeks. Usually a cancellation policy is included in the contract signed by the customer. This often stipulates how much, if any, of the money will be refunded, and under what time-frame and circumstances. There's really a huge difference in an order being cancelled two weeks out (when nothing is going to have been done on the order yet, except maybe ordering of non-perishable supplies that can always be applied to other orders and which will be covered by the deposit) and an order being cancelled two days before it is due, when there is a good chance that the cake is at least baked and iced and that any gumpaste work will have at least been started.

i think it would depend on how much work i had done already...if i had gumpaste flowers done before they cancled i would definatly charge for them.

A 2 day cancellation will result in a complete loss of money. Of course, this is always to the individuals discretion. If a 2 weeks notice is given, a refund minus the deposit and minus any other related expenses, will be given. I prefer to make gumapste flowers ahead of time, but I'm not willing to take a loss of them with just a two week notice. But as always, to your discretion. I just like to put actual policy in writing.

I didn't take deposits for non-wedding cakes under $100 and never had a problem.

But I did have a couple of weddings cancel. MONTHS before the wedding. And according to the contract, there was no refund.