Project revenue recognition, entity structuring, and subcontractor tracking for agencies, consultants, and architects.
Marketing agencies, consultants, architects, and other professional service firms run on project fees, retainers, and a mix of employees and specialist subcontractors. Hasco Tax Advisors works with professional service firms on revenue recognition, entity structure, and the specific deduction opportunities that come with running a knowledge-based service business.
A large upfront deposit for a project that spans several months is not fully earned income the day it hits your account. Revenue should be recognized as work is actually performed, and treating a deposit as immediate income distorts both your books and your tax picture.
Consultants and firm principals operating as an LLC can often benefit from an S-Corp election once profit is consistent, splitting income into reasonable salary and distributions. Architects and other licensed professionals may face state-specific rules on entity structure that need to be confirmed before assuming this applies.
Many professional service firms bring in specialist subcontractors, a copywriter, a structural engineer, a specific consultant, for individual projects. A subcontractor who works exclusively for your firm, on your schedule, using your systems, starts to look like an employee to the IRS regardless of the 1099 label.
Licensing fees, continuing education requirements, professional association dues, and industry conferences are often fully deductible but under-tracked, especially when paid personally by a principal rather than run through the firm's accounts.
Revenue tracked separately by billing model, so you can see which client relationships actually drive profitability.
Specialist subcontractor payments tracked throughout the year for accurate, on-time 1099-NEC filing.
Project deposits and upfront payments tracked as deferred revenue and recognized correctly as work is actually delivered.
S-Corp election evaluated against your actual numbers, with any state-specific licensing rules confirmed first.
Revenue recognition and subcontractor tracking built for agencies, consultants, and firms that bill by project or retainer.