Accounting & Tax Services for Consulting & Professional Services
Cash flow timing, reasonable compensation, and retirement planning for solo and small consulting practices.
What Makes the Books Different in Consulting & Professional Services
Cash versus accrual accounting isn't just a technical choice - it changes when income shows up on your books and how you feel about your cash position month to month. Most solo and small consulting practices can use cash basis, but it's worth confirming that's actually still the right call as revenue grows.
Work in progress and retainers are easy to lose track of. Unbilled hours you've already worked but haven't invoiced yet aren't income until they're billed, but they still represent real value you need visibility into for planning purposes.
If you're an S-corp, reasonable compensation isn't optional guidance, it's an IRS requirement - you have to pay yourself a salary that reflects what the work is actually worth before taking additional profit as distributions. Underpaying yourself here is one of the most common S-corp audit triggers.
Home office and travel deductions need real substantiation: square footage used exclusively for business, actual business-purpose travel logs. 'I work from home sometimes' isn't documentation, and this is an area that gets extra scrutiny.
Quarterly estimated taxes are the difference between a manageable tax bill and an April surprise with penalties attached. Consultants with variable income need this calculated against actual quarterly earnings, not a flat guess carried over from last year.
How We Help
Compliance & Licensing
We keep your quarterly estimated tax payments on schedule and calculated against your actual income, not a flat estimate that leaves you exposed to penalties.
Bookkeeping & Clean-Up
Unbilled work in progress and retainers tracked separately from recognized income, so you have real visibility into what's been earned versus what's been collected.
Tax Planning
We calculate reasonable compensation if you're an S-corp, review home office and travel deduction documentation, and plan around solo 401(k) or SEP contributions before year-end.
Tax Return Preparation & Filing
Returns prepared with quarterly estimates reconciled, retirement plan contributions confirmed, and deductions properly substantiated.
Payroll
S-corp owner payroll set at a defensible reasonable-compensation level, structured to withstand IRS scrutiny rather than minimize payroll tax at any cost.
CFO Advisory & Consulting
Client concentration risk reviews, pricing and utilization analysis, and cash flow planning around the gap between work performed and invoices collected.
Choosing the Right Entity
Solo consultants often start as a sole proprietor or single-member LLC, then move to an S-corp once net income is consistently high enough that the self-employment tax savings outweigh the added payroll and filing costs. We'll run the actual break-even point for your numbers rather than apply a rule of thumb.
Explore S-Corp ElectionFrequently Asked Questions
Should I be on cash or accrual basis?
Most solo and small consulting practices are fine on cash basis, but it's worth revisiting as revenue and receivables grow - accrual can give you a more accurate picture once you're carrying meaningful unbilled work or retainers.
What's 'reasonable compensation' and why does it matter for my S-corp?
It's the salary the IRS expects you to pay yourself for the work you actually do, before taking additional profit as a distribution. Paying yourself too little relative to your role is one of the most common reasons S-corps get flagged.
Can I deduct my home office?
If you have a space used exclusively and regularly for business, yes - but it needs to be documented (square footage, exclusive use), not just claimed because you sometimes work from your kitchen table.
How much should I be setting aside for quarterly estimated taxes?
It depends on your actual income for that quarter, not a flat percentage carried over from last year. We calculate it against what you're actually earning so you're not underpaying or overpaying.
Ready to Talk About Your Books?
Tell us where things stand and we'll tell you honestly what needs attention first.