Client Retainers

Collect upfront deposits from clients, track the remaining balance, and draw against the retainer as work is performed.

How Retainers Work in BizBooks Pro

A retainer is a prepayment from a client held on account until services are delivered. Law firms, consultants, marketing agencies, and other professional service businesses commonly use retainers to secure commitment and fund ongoing work.

In BizBooks Pro, retainers are managed as a liability on your books. When a client deposits money, it goes into a retainer liability account because you owe the client either services or a refund. As you perform work and draw against the retainer, the liability decreases and revenue is recognized.

Creating a Retainer for a Client

1. Navigate to Customers and select the client
2. Click Manage Retainer (or find it under the client's detail panel)
3. Enter the Retainer Amount agreed upon with the client
4. Optionally set a Minimum Balance threshold that triggers a replenishment notice
5. Click Create Retainer

The retainer record is now linked to the client. You can view the current balance, deposit history, and draw history at any time from the client's profile.

Recording Retainer Deposits

When the client sends a retainer payment, record it as a deposit:

1. Open the client's retainer panel
2. Click Record Deposit
3. Enter the Amount received
4. Select the Payment Method (check, wire, credit card, etc.)
5. Enter the Date the payment was received
6. Add an optional Reference (check number, transaction ID)
7. Click Save Deposit

BizBooks Pro records a journal entry that debits your bank account and credits the client retainer liability account. The retainer balance increases by the deposit amount.

Drawing Against a Retainer

When you complete work and want to apply retainer funds toward the client's bill:

1. Open the client's retainer panel
2. Click Record Draw
3. Enter the Amount to draw
4. Provide a Description of the work or invoice being covered
5. Optionally link the draw to a specific Invoice
6. Click Save Draw

The system records a journal entry that debits the retainer liability (reducing what you owe) and credits your revenue account (recognizing income). The retainer balance decreases accordingly.

Viewing Retainer History

The retainer panel for each client displays a chronological ledger of all deposits and draws. Each entry shows:

• Date: When the deposit or draw occurred
• Type: Deposit or Draw
• Amount: Dollar value of the transaction
• Description: Notes about the payment or work performed
• Running Balance: Retainer balance after the entry

This ledger serves as a transparent record you can share with the client to show how their retainer funds have been applied.

Accounting Treatment

BizBooks Pro handles the double-entry bookkeeping for retainers automatically. Here is how the journal entries work:

When a Deposit Is Received

The deposit increases your cash and creates a liability representing the obligation to the client.

When a Draw Is Recorded

The draw reduces the liability and recognizes the amount as earned revenue. Your income statement reflects the revenue in the period the work was performed, which aligns with accrual accounting principles.