Explore Our Retainer Invoice Example for Banking to Streamline Your Invoicing Process

Retainer invoice example for Banking

the question that we've been asked is uh when i have a client and then i intake a client and accept the retainer uh and actually later i invoice what actually happens in new lock to explain that what we're going to do is we're going to create a quick client let me create a new client by saying new contact hit on the client button let's say it is a alicia keys and let's do a quick matter for her let's say the matter is actually a small claims matter and i'll hit the save button now the first and foremost thing that you're going to ask alicia is for retainer so when you get the retainer you click on disbursements and retainer button click on new retainer let's say the retainer was 500 and the check number is say 789 obviously you'll put the method of payment let's say it's check number and you will do and apply now when you do that what you law will do is you'll do a couple of things it'll mark here saying retainer has 500 it also tells you that the balance on this account is 500 that means like you know if you don't do any work for this client you actually owe the client 500 that's what this is actually indicating and if you actually go to the account section you'll see that we have put an entry here called retainer for alicia keys for that matter and the check number and when you actually click on it it will tell you what it has done it's actually put a debit entry into the bank account and a credit entry into your liability account saying that you actually owe alicia 500 this can also be seen when you go back to the matter and hit the question mark button so when you actually hit the question mark it tells you like you haven't done anything so far 500 is there in trust you know as debited and that's what you owe to the client and you haven't done any work yet so i'm just going to now put a docket here let's say you know uh initial client meeting and i can also put another docket here called say document drafting i'm going to charge the first one say a flat rate of uh you know 100 on the second one a flat rate of say you know 200 that means total to 300 since this matter is actually set to ontario so if you're going to charge hst which is 13 so when i hit the save button you'll now see that the analytics starts projecting certain things like for example saying that this matter has a total projected invoice of 339 and if you actually do all the trust transfer that was what would be left that you owe to the client and 500 is still there in the retailer so now if you click here it tells you that's like a projected value of about 67 percent of the retainer and everything is there so let's now actually generate the invoice to do that i'll hit document generation invoice complete and actually i'll hit the invoice and hit the download button as you see in the invoice like the invoice clearly shows 339 dollars of invoice and it tells you that the balance and trust should be 161. but the balance and trust is not still 161 because we haven't done that trust transfer so when i go back to you law and hit the question mark it still tells me that 500 is still there in trust 339 is what the invoice we have raised and the pending transfer is that much how does it do that is because when we actually raised an invoice if i go to accounts and actually check for my account to receivable it will mark a you know a debit in the accounts receivable that alicia okay owes us 339 dollars right so when i go back to the matter and actually do a transfer and i say trust invoice payment transfer i pick that and actually do the transfer that's when the whole cycle gets complete so in accounts receivable it puts a trust transfer for 339 so when i actually click on this it puts four entries it says i moved the money from my trust bank account into my operational bank account which is td candidate trust i also marked my liability as a debit that means like you know i don't owe 339 dollars anymore and the invoice that i raised for 339 is also complete so that's how eula completes the transaction so now going back to the matter if i would actually hit the question mark it'll now tell you that there's no action required everything has been paid for and in trust you have 161 dollars so to summarize when you actually put the retainer in ula for 500 we put an entry in a county where when we actually click on this you'll see that we debit the bank and credit the liability account and then when you raise an invoice we would have put an entry in just in accounts receivable saying that you know the client owes us that much money and when you do a trust transfer we mark the whole cycle where we transfer it from the bank account to your operational account and we also mark the accounts receivable and the customer client