How to Record VC Sourcing Fees
Accounting for the fee earned by the bank for identifying and facilitating private venture capital investment opportunities for HNW clients.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Client Settlement Account | Debit | 15,000.00 | - |
| Venture Capital Advisory Income | Credit | - | 15,000.00 |
💡 Accountant's Note
The sourcing fee is recognized as revenue when the client makes a formal commitment to the venture capital deal facilitated by the bank.
Practitioner & Systems Framework
💻 ERP Architecture
Revenue recognition module triggered by deal closure status in the CRM.
⚠️ Audit Flags
Discrepancies between investment commitment dates and revenue recognition timing.
📄 Required Documentation
Executed commitment letter and advisory fee agreement.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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