Accounting for Professional Services Firms: Project Profitability, Billing Clarity, and Partner Financials Handled Right
Law firms, management consultancies, marketing agencies, engineering practices, PR firms, and HR consultancies have accounting requirements that are fundamentally different from product businesses. Revenue is project-based or retainer-driven. Profitability sits at the engagement level, not the product level. Partner distributions require accurate, auditable calculations every period. Collar Assist is structured around how professional firms actually operate.
Pain points we solve:
- No reliable visibility into which projects, clients, retainers, or practice areas are actually profitable after costs
- Retainer and milestone billing managed manually, inconsistently, and without systematic AR follow-up
- AP and AR management consuming significant internal time with no structured process or aging oversight
- Partner draw and distribution calculations performed manually each quarter, creating disputes and delay
- Monthly financial reporting that reflects revenue and costs but fails to surface the utilisation or billing efficiency metrics that drive business decisions
What we handle
Project and matter profitability reporting by client, engagement type, or practice area
Retainer billing, milestone invoicing, and hourly drawdown management
Full AP management, covering vendor invoice processing, payment scheduling, and aging reports
Full AR management, covering client invoice tracking, collections follow-up, and payment reconciliation
Partner and principal distribution accounting with accurate, auditable calculations every period
Monthly P&L, balance sheet, cash flow, and management reporting packaged for partners or investors
Payroll for professional staff including salaried employees, hourly support staff, and contractors
Who we work with
- Law firms
- Management consultancies
- Marketing and creative agencies
- Engineering and architecture practices
- HR and recruitment firms
- IT consultancies
- PR and communications firms
- Financial advisory practices
Why it matters
Most professional services firms know their revenue clearly. What they typically cannot see is their true profitability at the project, client, or partner level, because the books exist, but they are not structured to answer the questions that actually drive decisions. Collar Assist structures your accounting so that the numbers you need: which engagements to grow, which clients to reprice, which practice areas are generating real return, are visible every single month.
Talk to Our Professional Services Accounting Team
