Re: Client retainer (invoicing and payments)
To follow is further clarification about my situation.
I billed invoice #1004 on 18/05 to my client. This included an outstanding balance as a positive number and payments received until the invoice date, as a negative number.
All client payments received to date have been marked as sales receipts.
Since sending invoice #1004, I have received 2 payments from the client.
At the end of the month I plan to bill a new invoice with the additional charges accrued since #1004 was sent.
1. As the client is in debt to me, do I really need to maintain the retainer/client trust account? I guess not. This is a legacy from a previous arrangement.
2. When I bill the next invoice (e.g. #1005) at the end of the month I assume this should be sent as normal, but any payments received should just been taken off #1004 until that invoice is cleared, and then start on #1005.
3. Do I need to mark payments received as sales receipts? I assume not as they should be taken off invoice #1004.
3. If I don't maintain the retainer/client trust account how do I account for payments received before invoice #1004 was sent?
Any help is really appreciate – I just want to get this issue sorted.