Consultants & Coaches
Project-based income, retainer fees, and prepaid coaching packages require tracking beyond basic bookkeeping. We handle revenue recognition and capture the deductions consultants typically miss.
The Industry
Consultants and coaches sell knowledge and expertise. The business model looks simple from the outside. You provide a service, send an invoice, receive payment. But the financial reality involves multiple revenue streams and timing that makes monthly reporting confusing if not handled properly. Some clients pay project fees upfront. Others are on monthly retainers. Coaching programs might be sold as six-month packages with payment plans. Each creates different cash flow patterns and different questions about when that money counts as earned.
Most consultants work from home at least part of the time. They travel to client sites, attend conferences, invest in continuing education and certifications. They subscribe to software tools, pay for marketing, and sometimes bring in subcontractors for specific projects. The expenses aren’t complicated individually, but they need proper categorization to capture legitimate deductions. Many consultants in Santa Fe underreport deductible expenses because nobody showed them what actually qualifies or how to document it properly.
Who This Covers
Who This Covers
Management consultants, business coaches, executive coaches, marketing consultants, HR consultants, IT consultants, life coaches, leadership coaches. Independent professionals throughout Northern New Mexico selling expertise on a project, retainer, or program basis.
What Makes It Seem Simple
What Makes It Seem Simple
Revenue arrives in different patterns depending on how you structure your services. A project deposit isn’t the same as earned revenue. A prepaid coaching package creates an obligation until you deliver the sessions. Retainers need to be recognized monthly even if paid quarterly. Without proper tracking, you can’t tell if the business is actually profitable or just flush with cash from recent prepayments.
What We Handle
Revenue tracking that matches how your business actually works. Project fees recognized when milestones are completed or services delivered. Retainer income spread across the service period. Coaching packages recorded as deferred revenue and recognized as sessions occur. This gives you monthly financials that reflect actual performance instead of cash timing that distorts the picture. When you want to know if March was better than February, the numbers actually answer that question.
Expense categorization captures what consultants typically miss. Home office calculations documented properly. Professional development including certifications, courses, conferences, and coaching you receive. Software subscriptions for CRM, scheduling, video conferencing, and project management. Travel to client sites with mileage tracked correctly. We also handle New Mexico Gross Receipts Tax returns, which applies to most consulting services performed in the state, and quarterly estimated tax calculations based on your actual income patterns rather than guesses.
Revenue Recognition and Project Tracking
Revenue Recognition and Project Tracking
Multiple revenue streams tracked properly. Project income recognized when earned. Retainer fees spread across service months. Prepaid packages set up as deferred revenue with recognition as you deliver. Clear reporting that shows what you actually earned each month regardless of when payments arrived.
Deductions and Tax Compliance
Deductions and Tax Compliance
Home office deductions documented and calculated correctly. Professional expenses categorized including certifications, memberships, and continuing education. GRT returns filed accurately and on time. Quarterly estimated taxes calculated based on your income patterns instead of guesswork. Year-end tax prep ready books that capture every legitimate deduction.
What Goes Wrong
Prepaid coaching packages get recorded as income when received. You sell a $6,000 six-month program in January and record $6,000 in revenue. The next five months show little income even though you’re delivering sessions every week. Your quarterly estimates are based on a spike that already passed. Then a client cancels and wants a partial refund. The books become impossible to reconcile because revenue was never tracked properly to begin with.
Legitimate deductions go unclaimed because nobody explained what qualified. The portion of your home used for business. The mileage driving to client meetings. The conference you attended in Albuquerque. The certification program you completed. The coaching you paid for yourself. These are real business expenses that reduce your tax burden, but many consultants either don’t track them at all or track them incorrectly. GRT also catches people off guard. You serve clients in different parts of New Mexico, maybe some out of state. Rates and rules vary. Filing mistakes lead to penalties or overpayments you never recover.
Revenue Timing Distorts Everything
Revenue Timing Distorts Everything
January shows $15,000 from two prepaid packages. February shows $2,000 from one small project. Your accountant asks if business is declining. Actually, you’re delivering on those prepaid clients all spring. But the books don’t reflect that because revenue was recognized when cash arrived rather than when services were performed.
Tax Leakage
Tax Leakage
Home office deduction not taken because you weren’t sure about the rules. Professional development expensed inconsistently or not at all. Mileage estimated instead of tracked. GRT filed late or with incorrect rates. Quarterly estimates that miss by enough to trigger penalties. Each mistake is small. Together they cost thousands annually.
What Changes
Monthly financials reflect actual business performance. Revenue recognized when you deliver services, not when payments happen to arrive. You can compare months meaningfully and see trends in real time. When a large project completes, you know the actual profit after allocating all costs, not just that a big deposit hit the bank. Deferred revenue tracking means you always know how much work you owe clients versus how much income you’ve actually earned.
Tax position improves because deductions are captured correctly and estimated payments match your actual income patterns. GRT gets filed accurately with the right rates for where services were performed. Home office, mileage, professional development, software, and marketing expenses all categorized properly. If your income has grown to where an S-corp election makes sense, we can flag that conversation. The goal is books you can actually use to make decisions, with tax compliance handled so you don’t think about it.
Financial Clarity
Financial Clarity
Monthly reports showing actual earned revenue, not cash timing. Deferred revenue tracked so you know what you owe clients in future services. Project profitability visible after expenses. Trends you can identify and respond to instead of noise from payment timing.
Tax Efficiency and Compliance
Tax Efficiency and Compliance
All legitimate deductions captured and documented. GRT filed correctly with proper rates and timely submission. Quarterly estimates based on actual patterns reducing surprises in April. Books organized for year-end tax preparation with nothing left to reconstruct.
Santa Fe's Small Business Bookkeeper
The Next Step:
A Quick Conversation
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.
