Bookkeeping for Professional Services in Arizona

Consultants, law firms, marketing agencies, architects, IT firms and insurance agencies sell time and expertise. The questions are always the same: which clients are profitable, who hasn't paid, and how much can the owners safely take out?

We keep your books current every month and set them up to answer those questions, with revenue by client or service line and a clean accounts receivable list.

What we handle for professional services

• Invoicing and accounts receivable kept current so nothing slips
• Revenue by client, practice area or service line
• Contractor and freelancer payments tracked for 1099s
• Subscriptions and software costs reviewed regularly
• Trust and retainer accounts kept separate for firms that hold client funds
• Owner draws, guaranteed payments or payroll recorded correctly for your entity type

Arizona tax notes

Most professional services aren't subject to Arizona transaction privilege tax, so your main tax planning is around income tax and how owners are paid. Clean monthly books make it easy for your CPA to advise on quarterly estimates or an S-corp election.

If you resell products or software to clients, those sales may be taxable, and we keep them separate from your service revenue.

More than bookkeeping: insight you can use

We're more than a bookkeeper who keeps your books current. Every month we look at your numbers and tell you what they mean: where margins are slipping, which costs are creeping up, and practical ideas to make and save more money. Think of us as a light fractional CFO, at a bookkeeping price.

For professional services, that usually means:

• Profit by client and by service line
• Days to collect and which clients pay late
• Effective hourly rate on fixed-fee projects
• How much owners can take out without squeezing cash flow

What it costs

Monthly bookkeeping starts at $250 per month. Most of our clients pay around $500 per month, depending on how many accounts we reconcile and how many transactions you have. Book a quick call and we'll give you an exact quote.

Frequently asked questions

Can you handle trust or retainer accounts?

We record retainers and client funds as liabilities and keep them separate from operating income. For legal trust accounting we work with whatever system your firm uses.

Can you track profit by client?

Yes. We set up customers, projects or classes so revenue and direct costs can be reported by client.

Do you work with firms that use contractors?

Yes. We track contractor payments during the year and file the 1099s in January.

Services for your business

We work with professional services across Arizona, including Gilbert, Mesa, Chandler, Queen Creek, Phoenix and Scottsdale. See all service areas.