Bookkeeping Retainer Question

by Jackie
(Texas)

Bookkeeping Retainer

Bookkeeping Retainer

How do I post a retainer paid to an attorney in QuickBooks?


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Jun 11, 2018
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starstarstarstarstar 		Bookkeeping Retainer Bookkeeping Entry
by: Stephanie

Hi Jackie,

Thanks for your question.

A retainer deposited is posted in Quickbooks as follows:

DEBIT the Bank Account (asset)
CREDIT the Retainer Account (current liability)

Services rendered against the retainer would then be posted as:

DEBIT the Retainer Account
CREDIT the Service Income Account

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Retainer to a Vendor or Supplier

by Vin
(Toronto)

How do I record a 'retainer' paid to a vendor or supplier? I use QuickBooks. Thanks.

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Jan 20, 2024
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starstarstarstarstar 		Managing Retainers in QuickBooks
by: BB

When recording a retainer paid to a vendor or supplier in QuickBooks, you can follow these steps:

Create a New Vendor:

If the vendor is not already in your vendor list, add them as a new vendor.

Go to the "Expenses" or "Vendors" menu and select "Vendor Center."

Click the "New Vendor" button and enter the vendor's information.

Record the Retainer Payment:

Go to the "Banking" menu and select "Write Checks."

Choose the bank account from which the retainer is paid.

Select the vendor's name from the "Pay to the Order of" field.

Enter the retainer amount in the "Payment" field.
Specify the Account: In the "Account" column, select an appropriate expense account related to the retainer, such as "Retainer Expense" or "Prepaid Expenses."

If you don't have a specific account, you can create one by selecting "Add New" in the account dropdown.

Add a Memo: In the "Memo" field, add a brief description or note indicating that this payment is a retainer.

Save the Transaction: Click "Save & Close" to save the check. This process ensures that the retainer payment is recorded accurately in QuickBooks, and you can track the amount until it's applied to future invoices or expenses.

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