Professional Services

Retainer / Subscription Service — Annual Upfront Payment

A client pays a full-year retainer for on-call legal or advisory services billed annually in advance.

Account NameTypeDebit ($)Credit ($)
Cash / BankAsset (+)36,000.00-
Deferred Retainer Revenue (Liability)Liability (+)-36,000.00

💡 Accountant's Note

Annual retainer payments received before services are delivered are deferred revenue. JOD 3,000 is recognized each month as the firm stands ready to provide services. The firm's obligation is availability, not a specific deliverable.

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Expert Analysis by Qusai Ahmad

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