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Accounting for Prepaid Client Retainer Expenses
10/6/09 2:09 PM
Total Views: 91
Total Views: 91
We charge clients a retainer for prepaid expenses - I have created a liability acct for these - what JE do i need to make each month to reduce the liability.
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10/6/09 6:08 PM
First I would enter an invoice for the deposit or a sales receipt. Make sure to use an item (such as Deposit of Work) to directly hit the liability account. Then again I would enter an invoice/sales receipt for ALL the charges. On the next or last line I would again using the same item code (such as Deposit of Work) to hit the liability account.
