Client Retainers

Take upfront money from clients, watch the balance burn down as you deliver work, and let Kantivo handle the liability-to-revenue accounting in the background.

How Retainers Work

A retainer is money a client hands you before you've earned it — a deposit held against future work. Law firms, accounting firms, consultancies, marketing agencies, and other service businesses use them to lock in commitment and bankroll the work ahead.

In Kantivo, a retainer sits on the books as a liability, not as revenue. You haven't done the work yet, so you owe the client either services or their money back. As you deliver work and draw against the retainer, the liability shrinks and revenue is recognized in its place. Standard accrual treatment, automated.

Setting One Up

1. Open Customers and pick the client
2. Click Manage Retainer (also accessible from the client detail panel)
3. Enter the retainer amount you agreed on
4. Optionally set a minimum balance — Kantivo will flag it when the retainer drops below that line
5. Click Create Retainer

The retainer record is now attached to the client. The current balance, deposit history, and draw history are visible any time from the client's profile.

Recording Deposits

When the money lands, record it on the retainer:

1. Open the retainer panel for the client
2. Click Record Deposit
3. Fill in the amount received
4. Pick the payment method (check, wire, ACH, card)
5. Enter the date the payment landed
6. Add an optional reference (check number, wire reference, Stripe ID)
7. Click Save Deposit

Kantivo posts the journal entry — debit bank, credit the client retainer liability — and the balance ticks up.

Drawing Down

When you've done the work and want to apply retainer funds to it:

1. Open the retainer panel
2. Click Record Draw
3. Enter the amount being drawn
4. Add a description of the work covered
5. Optionally link the draw to a specific invoice
6. Click Save Draw

Kantivo posts the offsetting journal entry — debit the retainer liability (clearing the obligation), credit your revenue account (recognizing the income). Retainer balance drops by the draw amount.

Retainer Ledger

The retainer panel keeps a chronological ledger of every deposit and draw on the account. Each row shows:

• Date of the transaction
• Type — deposit or draw
• Amount
• Description — payment notes or work performed
• Running balance after the entry

This ledger is shareable — print or PDF it as a transparent record of how a client's retainer has been applied.

The Bookkeeping

Kantivo handles the double-entry side automatically. The entries look like this:

Deposit Received

Cash up, liability up. No revenue yet — you haven't earned it.

Draw Posted

Liability down, revenue recognized. The income statement reflects the revenue in the period you did the work — proper accrual treatment.