Do you or do you know someone that accepts retainers from clients?
To accept client retainers in QuickBooks:
1. Create a liability account called “Client Deposits”.
2. Create a new item, type is “service”. Name it “Client Deposit” and then pick the liability account you created called “Client Deposits” in the account field.
3. Then, when you accept a deposit, open a Sales Receipt, pick the client from which you received the deposit. In the item field enter the item called “Client Deposit”, then enter the amount received in the amount field. Complete any other fields you feel necessary. Click save and close.
4. To apply the client deposit to an invoice, create the invoice as you want it, then on the next line down, choose the item “Client Deposit” and enter the retainer amount to apply to the invoice as a negative in the amount field. This will take the retainer out of the liability account and apply it to the invoice.
Next month I’ll show you how to create a client retainer report for each individual client.
To learn more about how you can use QuickBooks in your business, contact me at (619) 463-6851 x2 or firstname.lastname@example.org.