Professional Services Knowledge Center
Explore our verified library of Professional Services transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Accruing Unbilled Revenue (Work-in-Progress)
Recording revenue for work performed this month that hasn't been officially invoiced yet.
Professional Indemnity Insurance Premium
Paying for insurance that covers legal liability for professional errors or omissions.
Receipt of Advance Success Fee
Recording a deposit for a 'Success Fee' (e.g., in M&A or Legal) that is only earned if a specific outcome is achieved.
Royalty Income from IP License
Receiving a monthly payment from another company for using your patented technology or brand.
Hourly Billing (Legal / Consulting)
Recording revenue for billable hours worked on a client project during the month.
Proposal & Bid Cost Expensed
Expensing internal staff time and out-of-pocket costs preparing an RFP or bid submission.
Incremental Contract Acquisition Cost Capitalized (IFRS 15)
Capitalizing the sales commission paid only upon winning a multi-year professional services contract.
Contract Acquisition Cost — Monthly Amortization
Releasing one month of the capitalized sales commission over the service contract term.
Contract Fulfilment Cost Capitalized (Setup / Mobilization)
Capitalizing pre-delivery setup costs that directly relate to a specific client engagement — such as system configuration, onboarding scripts, and initial staff training.
Client Advance / Mobilization Deposit Received
Recording an upfront cash deposit from a new client before any services are delivered.
Client Advance Offset Against Progress Invoice
Applying the client's advance deposit against the first billing milestone.
Time-and-Materials Revenue — Weekly Billing
Recognizing weekly revenue under a T&M engagement where the firm bills hours at agreed rates.
Fixed-Fee Engagement — Revenue Over Time (% Completion)
Recognizing a portion of a fixed fee based on project completion percentage at month-end.
Fixed-Fee Milestone Invoice Raised
Billing the client when a contractual milestone is achieved, converting the contract asset to a receivable.
WIP Accrual — Month-End Timesheet Hours Not Yet Billed
Accruing month-end work in progress for hours worked by fee earners but not yet invoiced to the client.
WIP Converted to Accounts Receivable on Invoicing
Reclassifying the WIP contract asset to a trade receivable when the client invoice is issued.
Direct Staff Cost Allocated to Engagement
Allocating a consultant's salary cost to a specific client project based on time recorded on the timesheet.
Overhead Allocation to Engagements (Indirect Cost)
Apportioning office rent, IT, and support staff costs across client engagements using a standard overhead rate.
Sub-Consultant / Sub-Contractor Cost
Recording the cost of an external specialist engaged to support a client project.
Sub-Consultant Cost Passed Through to Client (at Cost)
Billing the client exactly the sub-consultant's cost with no markup as a direct recharge.
Disbursements / Out-of-Pocket Expenses — Client Recharged
Recharging travel, printing, courier, and filing fees to the client under the engagement letter.
Non-Rechargeable Disbursements Absorbed by Firm
Recording out-of-pocket costs that the engagement letter does not permit the firm to recover from the client.
VAT on Professional Fee Invoice (Jordan 16%)
Adding 16% Sales Tax to a professional services invoice issued to a Jordanian corporate client.
Withholding Tax Deducted by Client (Jordan)
Recording the WHT deducted by the client before remitting payment for professional services.
Credit Note Issued — Fee Reduction Agreed with Client
Issuing a credit note when the firm agrees to reduce fees following a client dispute over service quality.
WIP Write-Down — Irrecoverable Engagement Hours
Writing down WIP when hours worked cannot be billed because the engagement was terminated or the work product is rejected.
Allowance for Doubtful Client Receivables
Provisioning for professional fee invoices where collection is uncertain due to client financial difficulty.
Client Receivable Written Off (Unrecoverable)
Writing off a client invoice confirmed as unrecoverable after all collection efforts have failed.
Client Debt Recovered After Write-Off
Recording unexpected payment from a client whose invoice was previously written off.
Onerous Fixed-Fee Contract — Loss Provision
Recognizing an immediate loss when the estimated cost to complete a fixed-fee engagement exceeds the remaining fee to be earned.
Early Payment Discount Offered to Client
Offering a 2% discount if the client pays within 10 days of invoice date.
Retainer / Subscription Service — Annual Upfront Payment
A client pays a full-year retainer for on-call legal or advisory services billed annually in advance.
Monthly Retainer Revenue Recognition
Releasing one month of the deferred annual retainer to earned revenue.
Retainer Breakage — Unused Hours Lapsed
Recognizing revenue from retainer hours that expired unused at the end of the contract period.
Contingent Success Fee — Constraint Lifted at Deal Close
Recognizing a fully contingent M&A success fee once the transaction completes and the fee is no longer variable.
Performance Bonus — Variable Fee Earned
Recognizing a performance bonus when the client confirms the firm exceeded agreed KPI targets.
Contract Modification — Additional Scope Agreed
Recording additional revenue when a change order adds new services to an existing engagement.
Partner Profit Distribution (Partnership)
Recording the quarterly distribution of profits to equity partners in a professional services partnership.
Partner Monthly Drawings (Advance Against Profit)
A partner withdraws a monthly drawing against their expected annual profit share.
Professional Staff Monthly Payroll (Gross)
Recording gross salaries for associates, analysts, and support staff.
SSC Employer Contribution — Professional Staff (Jordan)
Recording the 14.25% employer SSC contribution for Jordanian professional services employees.
EOSB Monthly Provision — Professional Staff (Jordan)
Accruing the end-of-service gratuity for Jordanian employees of the professional services firm.
Staff Travel Expense — Billable Engagement
Recording a consultant's flights and hotel costs for a client site visit to be recharged.
Non-Billable Staff Training & CPD
Recording CPD courses, exam fees, and technical training that cannot be recharged to clients.
Annual Professional License & Bar/CPA Registration Fee
Paying annual renewal fees for professional licenses — bar association, CPA institute, engineering syndicate.
Professional Indemnity Insurance Premium (Prepaid)
Paying the annual professional indemnity insurance premium — already in the dataset as a point-in-time entry; this is the separate prepaid recognition.
Professional Indemnity Insurance — Monthly Amortization
Releasing one month of the prepaid PII premium to the income statement.
Engagement Close-Out — Unbilled WIP Written Off
Writing off residual WIP on an engagement that is closed with the client's final invoice already issued.
Engagement Close-Out — Final Revenue True-Up
Recognizing the final tranche of revenue on a fixed-fee project once all deliverables are confirmed complete.
Client Advance Refunded — Engagement Cancelled
Refunding an unused client advance when a project is cancelled before meaningful services are delivered.
Referral / Introducer Fee Paid
Paying a referral fee to a third party who introduced a new client to the firm.
Referral Fee Received from Another Firm
Receiving a referral fee from a law firm or advisor for directing a client to them.
Joint Engagement — Revenue Sharing Between Firms
Recording the firm's share of revenue on a joint mandate where two firms collaborate and split fees.
Staff Secondment — Salary Recharged to Client
Recharging the salary cost of a seconded employee placed full-time with a client for a defined period.
Sale of Intellectual Property / Report Licence
Selling a licence to use a proprietary methodology, benchmark study, or research report to multiple clients.
Internal Research & Thought Leadership Cost
Recording the internal cost of producing proprietary research, whitepapers, and market reports used for business development.
Client Entertainment Expense (Non-Deductible)
Recording the cost of a client dinner for relationship development.
Network / Franchise Management Fee Paid to Global Firm
Recording the monthly fee paid by a local professional services firm to its global network (e.g., Big Four affiliation, legal network).
Corporate Income Tax Provision — Professional Services Firm
Accruing the annual income tax on the firm's taxable profit.
Annual Research Subscription — Deferred Revenue
Collecting an annual subscription fee for access to a proprietary market intelligence platform.
Research Subscription — Monthly Revenue Release
Releasing one month of the deferred annual subscription to earned revenue.
Office Lease — Monthly Expense (Professional Firm)
Recording the monthly office lease cost for a law firm, consulting firm, or accounting practice.
Practice Management / Legal Tech Software Subscription
Paying for annual subscriptions to billing software, legal research databases, or document management platforms.
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