Professional Services
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.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 5,000.00 | - |
| Unearned Success Fees | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
Since the 'success' hasn't happened yet, the money is a liability. It only moves to revenue once the deal is closed or the case is won.
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