Retainer Billing Software
How to bill a client a fixed fee each period for work you agree on in advance: a recurring invoice for the retainer, time logged against the client's project so you can see how the hours are used, and an estimate for anything outside the agreement.
Key Takeaways
- Bill the retainer fee with a recurring invoice that's sent automatically or saved as a draft to check.
- Log the time you spend on the client's work in a project, so you can see the hours it takes.
- Export timesheets when the client wants to see how the time was spent.
- Send an estimate for work outside the retainer, and turn it into an invoice after the client approves it.
What a retainer is
A retainer is an agreement in which a client pays a fixed fee each period, such as each month, for work you agree on in advance: a set number of hours, a list of deliverables or ongoing availability. Your agreement sets what the fee covers and what happens to time that isn't used. Billed bills the fee and records the time you spend.
Billing the retainer fee
Billed's recurring invoices page says: "Establish a stable cash flow with retainers. Negotiating fixed prices and sending recurring invoices makes it easier for you to forecast your income and upcoming workload."
Billed's invoice software page says: "For clients you bill on a schedule, set up a recurring profile once. Choose the billing frequency (daily, weekly, monthly or yearly) and how many invoices to send, or keep sending until you stop." Its FAQ adds: "You can choose to send them automatically or save them as drafts to check first."
Seeing how the time is used
Set up a project for the client's retainer work. Billed's time tracking page says: "Log time for each task as you work, and see how much time goes into each project." Its FAQ says: "Yes. Project time tracking shows how much time you are spending on each project."
When the client wants to see where the hours went, the same page says: "Create timesheets from the time you and your team have tracked to see how the team is spending its time, and export them when a client or your accountant needs a copy." For a team, it says: "Invite teammates, accountants and contractors to your Billed account and grant them permissions, so the whole team tracks its time in one place."
Worked example: a monthly design retainer
These are sample figures. A design studio's agreement with a client is a monthly retainer of 3,000.00 for up to 20 hours of design work. The studio bills it with a monthly recurring invoice set to send automatically.
In March, the team logs 8 hours on a brochure, 6.5 hours on social graphics and 4 hours on revisions in the client's project, 18.5 hours in all, and exports the timesheet for the client.
The client also asks for a landing page that isn't part of the retainer. The studio sends an estimate for 900.00, the client approves it online, and the studio converts it to an invoice. For March, the client is billed 3,900.00.
Work outside the retainer and getting paid
For work the retainer doesn't cover, send an estimate first. Billed's features page says "your clients can approve or reject your estimates online," and Billed's invoice software page says you can "convert an approved estimate into an invoice."
Billed's invoice software page says: "Connect Stripe and each invoice gets a pay button for card payments, or connect PayPal to add a PayPal option. Payments made by check or cash can be recorded in Billed as offline payments." Billed's help center says you turn on payment reminders on the invoice, and "You can set a schedule of payment reminders before and after the invoice's due date."
How you record a retainer paid in advance is a question for your accountant. Lawyers and other licensed professionals can have their own rules on retainers, so check with your licensing body.
Retainer Billing in Billed
Retainer Fees on a Schedule
Bill the retainer with a recurring invoice; Billed's recurring invoices page says "Establish a stable cash flow with retainers. Negotiating fixed prices and sending recurring invoices makes it easier for you to forecast your income and upcoming workload."
Related Features
Explore the Billed features that power retainer billing.
Frequently Asked Questions
Start Invoicing With Billed
Set up your account and send your first invoice with Billed.
At a glance
| You want to | In Billed |
|---|---|
| Bill the monthly retainer fee | Recurring invoice |
| See how the hours are used | Time logged in a project |
| Show the client the hours | Exported timesheet |
| Bill work outside the retainer | Estimate, then invoice |
Sources for this page. Billed's capabilities come only from its own pages: Recurring invoices, Invoicing, Time tracking, All features and the help center.
When this isn't for you
If a client pays for each piece of work separately, invoicing the work when it's done is simpler than a retainer.