Accounting for professional services
Agencies, consultancies, clinics, IT firms — service businesses live and die on utilisation and collection. We keep the books clean and show you which clients and projects actually pay for your time.
Service-firm issues we handle
- Revenue recognition on retainers, milestones and long projects
- Unbilled work-in-progress that never converts to invoices
- Receivables ageing — the profit you've earned but can't spend
- Project and client profitability reporting
- VAT timing on advances and continuous services
- Corporate tax on service income, including freezone consultancies
Profit per client, not just profit
A service firm's P&L can look healthy while two anchor clients quietly subsidise five unprofitable ones. Our reporting allocates time-based costs to clients and projects where your data allows, so pricing conversations happen with numbers instead of instinct.
We also watch the cash cycle: WIP raised to invoice promptly, receivables aged and chased, and VAT accounted at the right tax point — advances included.
FAQs
When is VAT due on an advance payment?
The tax point is generally the earlier of invoice, payment or supply — so VAT on a client advance is usually due in the period you receive it, not when you deliver the work.
How should retainers be recognised?
Monthly retainers are typically recognised over the service period. Large prepaid retainers sitting fully in one month's revenue distort margins and mislead everyone, including you.
Can you report profitability by client?
Yes — with timesheet or project data we allocate direct costs and a fair overhead share per client or project, and flag the ones below your floor.
Does corporate tax change anything for consultancies?
Service income is fully within the 9% regime; freezone consultancies rarely have qualifying income, so planning usually centres on Small Business Relief and the AED 375k band rather than the 0% rate.
Run the numbers with people who know your industry
Free consultation. Bring your latest P&L — or your shoebox of invoices. Both are fine.