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lets move on to client retainers so a client retainer is used whenever we receive a prepayment from a customer that is being served as a down payment as a deposit or a retainer that is then going to be used to pay invoices that are due for services that will be rendered in the future theres actually three ways to record this retainer the process alarm payments one is we can use a deposit method two we can use the accounts receivable method or the negative accounts receivable method and three we will use the earn income method now why do we need to choose one of the methods and why is it important for us to go this route so number one if we got a sales tax requirement so for example lets say that in your state you can only remit sales tax when the when the product has actually been delivered then you dont want to pre invoice that sale until you actually deliver it so it will require you to receive a payment upfront and and use one of these methods to record the prepayment before yo
