Painless online retainer invoices are here!

How does a retainer work?

Retainers are most often found in the areas of law, accountancy and HR but might also involve the use of specialist consultants in fields such as IT, energy or engineering. Retainer services are generally set up on an annual basis with a fixed annual fee being agreed at the start. For this fee, you should get the right amount of professional advice and support.

Having this expert and professional advice always on tap helps take some of the pressure off small businesses working within budgets that don't usually cover in-house legal, accountancy or HR expertise.

Once you've paid your retainer deposit, however, these skills and services become available to you. At zistemo, we help you set up a retainer, create a personalized retainer agreement sample by using bespoke templates and simplify the process of online retainer invoicing.

What is a retainer agreement?

A retainer agreement is a contract for services that are yet to be provided and usually falls somewhere between a one-off contract and full-time employment. In simple terms, it is when a client pays in advance either for a specified and time-bounded service or to retain the services of a professional consultant to use as and when necessary.

With a retainer agreement, you know that payment is guaranteed and can thus dedicate more time and attention to your client, focusing completely on them and delivering a high-quality service. This in return, keeps clients happy and willing to both set up future retainer agreements as well as recommend your services to others.

How can you define a retainer fee?

A retainer fee is the upfront cost paid to retain the services of a professional consultant.

How does a retainer fee work?

The retainer fee funds the initial and ongoing expenses of the required service and, as such, should be kept in a separate account from the consultant's working account. This ensures the fee isn't spent before the services have been provided.

Keeping it in a separate account also means that if all of the retainer fees aren’t required, they can easily be refunded. In many cases, particularly when the retainer fee applies to legal services, there will also be additional ongoing fees on top of the upfront payment.

What is a retainer payment?

A retainer payment differs from a retainer fee in that it is a non-refundable advance payment made in compensation for work or services the client expects to receive. An advance payment retainer is a guarantee of commitment. In some cases, particularly involving ongoing legal issues, a separate hourly rate might also be charged on top of the retainer payment terms.

Retainer payments can be set and calculated in different ways. They might be paid to cover the entire cost of a service or set up to allow access to specialized consultants as and when required. If this consultant provides you with occasional advice, but that advice potentially saves your business tens of thousands of pounds then a retainer payment is good value.