Professional Services Accountant
For Firms That Bill by the Hour
From S-Corp optimization and project profitability to partner distributions and QBI planning — we handle the financial complexity for consultants, lawyers, agencies, and service firms.
A guide by Taxstra Tax & Accounting — CPA-led tax strategy for business owners
Professional Services Accounting Challenges
Consultants, attorneys, agencies, and professional service firms have unique financial challenges. Your biggest asset is your time, and your biggest tax opportunity is entity structure. We optimize both.
Project & Client Profitability
You know your total revenue, but do you know which clients are profitable and which are losing you money? We track revenue and costs by client and project so you can double down on winners and exit losers.
S-Corp Tax Optimization
For consultants and professional service firms, the S-Corp election is often the single biggest tax savings opportunity — reducing self-employment tax by $10K–$30K+ per year. But it must be structured correctly with reasonable compensation.
Contractor vs. Employee Classification
Professional service firms regularly engage subcontractors and 1099 workers. Misclassification can trigger back taxes, penalties, and interest. We ensure your workers are properly classified and documented.
Retainer & Deferred Revenue Tracking
Monthly retainers, prepaid project deposits, and milestone-based billing create deferred revenue that must be recognized correctly. We track earned vs. unearned revenue so your books — and your tax liability — are accurate.
Professional Services Accounting
End-to-end financial management built specifically for consulting firms, law practices, marketing agencies, and professional service businesses.
Monthly Bookkeeping
Client-level and project-level bookkeeping that tracks revenue, direct costs, and margins by engagement. We reconcile retainers, track deferred revenue, and categorize expenses for maximum deductibility.
Learn More →Payroll & Contractor Payments
W-2 payroll for employees, reasonable compensation for S-Corp owners, 1099 processing for subcontractors, and benefit administration. Multi-state withholding for remote teams handled accurately.
Learn More →Tax Planning & Preparation
Proactive quarterly tax planning with S-Corp optimization, QBI maximization, retirement plan contributions, and estimated tax payments. We model multiple scenarios to minimize your total tax burden.
Entity & Compliance Management
1099 filing for subcontractors, S-Corp election maintenance, annual report filings, partnership agreement compliance, and state registration for multi-state service delivery.
Financial Reporting & Analytics
Partner-level P&L statements, client profitability analysis, utilization rate tracking, effective billing rate calculations, and cash flow forecasting. The reports that drive professional service firm growth.
CPA Oversight & Advisory
Every transaction reviewed by a licensed CPA. We advise on entity structure, partner distributions, associate buy-in arrangements, practice valuation, and scaling from solo to multi-partner firm.
Tax Strategies for Professional Services
Professional service firms have the highest effective tax rates of any business type. These strategies bring that rate down significantly.
S-Corp Election & Reasonable Compensation
Solo 401(k) + Cash Balance Plan
Augusta Rule for Client Meetings
Professional Services Accounting FAQ
Common questions from consultants, attorneys, and agency owners about bookkeeping, payroll, and tax planning.
Bill More. Keep More. Stress Less.
Join consultants, attorneys, and agency owners who stopped overpaying taxes, started tracking client profitability, and finally got the financial clarity their firms deserve.
Find Out What You're Overpaying in Taxes
Book a free 30-minute call to walk through your situation. We'll tell you exactly how our CPA-led team can help — and whether we're the right fit.