Management Services Agreement With Retainer
Description
How to fill out Master Service Agreement For Project Management Services?
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FAQ
The retainer fee ensures that the hired service provider reserves time for the client in the future when there is a need for their services. Unlike a one-time contract, a retainer agreement is a long-term work-for-hire contract and thus can retain ongoing services.
Accounting for a Retainer Fee If the firm is using the accrual basis of accounting, retainers are recognized as a liability upon receipt of the cash, and are recognized as revenue only after the associated work has been performed.
A retainer agreement is a long-term work-for-hire contract between a company and a client that retains ongoing services from you (as a consulting business) and provides you with a stable amount of payments.
Calculate the Retainer FeeMultiply your hourly rate, with tax included, by the number of hours required to get your retainer fee. Any other expenses should be added to this number, such as supplies or processing and legal fees.
How to set up a retainer agreementHourly. Offer the client a specific number of hours of work per month.By deliverable. Promise to deliver a set number of products or services per month.For access. In some instances, a client might pay a monthly fee for access to your services.
