Professional Fees Journal Entry

Professional fees is the amount of specialized works or tasks assigned to specialized or qualified persons such as Accountants, Lawyers, Doctors, etc., These persons having a qualified degree to perform their projects.

Professional fees is an Expense for the company which hires such qualified persons for the business’s works and a Revenue for these professional persons as they provide services to the company.

For the business which receives the services and makes payment to professionals, the journal entry may be as follows:

                               Professional Fees Expense a/c   XXX

                                                                               Cash a/c   XXX

                                                                (Paid Professional Fees)

If professional fees is paid on account, then the entry would be as follows:

                            Professional Fees Expense a/c   XXX

                                                                            Accounts Payable a/c   XXX

                                                             (Paid On Account / Credit)

Received Professional Fees For Services Rendered Journal Entry

For Professionals’ business which received payment against the services rendered to the company’s business, the entry may as shown below:

                                                             Cash a/c   XXX

                                                                           Professional Fees Received a/c   XXX

                                                            (Professional Fees Received For Cash)

When it is received on account, then:

                                 Accounts Receivable a/c   XXX

                                                                           Professional Fees Received a/c   XXX

                                                                  (Received On Account)

Professional fees is recorded on Income Statement for the accounting period.