Consultants & agencies
Bookkeeping for consultants and professional services
You sell expertise and billable time, not bookkeeping hours. Dave Platzer gives consultants clean retainer tracking, clear project margins, and calm quarterly tax prep. Greater Philadelphia and virtual nationwide.
Bookkeeping for consultants and professional services requires 4 things: recording client retainers as liabilities until hours are delivered, tracking project margins so you know which clients actually turn a profit, separating mixed card expenses, and handing clean, reconciled financials to your CPA every quarter.
High billable rates with confusing cash flow
Consulting practices, creative agencies, and solo advisory firms look simple on the surface: send proposals, bill hours or retainers, deliver exceptional work, and collect invoices. You command solid hourly or project fees, and your client roster is steady.
The trouble begins in the timing. A client pays a $10,000 retainer in January for work stretching through March. If that deposit gets booked immediately as January revenue, your numbers look artificially high in month 1, and your tax estimate jumps. By March, when the hours are delivered and software or contractor costs hit, the bank account feels tight.
Meanwhile, expenses creep in from multiple directions: recurring SaaS tools, digital subscriptions, subcontractor 1099 invoices, and occasional personal spending charged to the business card during travel. When the quarter ends, you are staring at a spreadsheet trying to guess what you owe the IRS in estimated taxes.
How we protect your firm's cash flow
1. Proper retainer and deposit accounting
Upfront retainers and project deposits are not earned income until the work is complete. Dave records advance payments into an unearned revenue account, drawing down funds only as milestones are reached or hours are billed. Your profit reports match actual delivery, and cash surprises disappear.
2. Project profitability and scope-creep tracking
Blended revenue hides which clients are feeding your business and which ones are draining it. Dave maps direct project expenses, software tools, and subcontractor costs to specific engagements. You see your true margin per client, helping you price future proposals with confidence.
3. Tool integration without ledger chaos
Whether you track billable hours in Harvest, Toggl, or QuickBooks, or invoice through Stripe or Bill.com, Dave keeps your general ledger clean. Merchant fees are categorized, batches match bank deposits, and your software tools stay in harmony.
4. Calm quarterly tax prep and CPA handoff
Dave provides current quarterly profit snapshots so you never guess on estimated tax payments. When tax season arrives, your CPA receives an organized, reconciled set of books, saving thousands in emergency accounting cleanup fees.
Local to South Jersey and Greater Philadelphia practices
Dave meets consultants, agency principals, and professional advisors throughout South Jersey (including Camden, Burlington, and Gloucester counties) and Greater Philadelphia (including Montgomery, Bucks, and Delaware counties) in person or over coffee. He also works virtually with consulting firms anywhere in the United States.
Looking for project accounting insights? ReadDave's guide to consultant bookkeeping.
Consultant bookkeeping questions
How should consultants handle client retainers in QuickBooks?
Client retainers are unearned revenue and must be recorded as a liability when received. As you log hours or deliver project milestones, you draw down the retainer into earned income. Spending retainers before hours are worked is one of the quickest ways professional service firms face cash crunches.
Can you track project profitability and billable rates?
Yes. Dave sets up class and project tracking so direct software costs, contractor fees, and billable time map to specific clients. You see which client engagements actually yield profit and which ones suffer from unbilled scope creep.
How do you help consultants stay ahead of quarterly estimated taxes?
Dave tracks net profit throughout each quarter so your estimated tax payments match real earnings. When tax season arrives, your CPA gets a reconciled set of books with zero scramble, avoiding surprise tax bills in April.
What professional service businesses do you work with?
Solo consultants, management advisors, digital and marketing agencies, architectural and design firms, executive coaches, and specialized professional practices. If your business sells expertise and billable time, Dave understands your cash rhythm.
Do you meet consultants in person?
Yes. Dave meets consultants and agency owners throughout South Jersey (Camden, Burlington, and Gloucester counties) and Greater Philadelphia face to face: at your office, workspace, or over coffee. He also works virtually anywhere in the United States.
Focus on your clients. Let Dave handle the books.
Book a free consultation over Zoom or in person over coffee. Tell Dave about your firm, and he'll review where your books stand. If you are behind or your retainers are messy, don't worry. He has seen worse.