Accounting and advisory for Consulting Firms
Consulting firms sell time and expertise, so profit lives in the gap between what partners draw and what the firm actually earns. Laya gives partner-led advisory and consulting practices clean, timely books — separating draws from operating costs and surfacing the utilization and billing metrics that decide whether a quarter is profitable.
The financial challenges Consulting Firms face
Partner draws and distributions tangled up with operating expenses
When partners pull money out as draws, those transfers are not business expenses — but they often land in the books that way. Mixing equity distributions with opex distorts profitability and makes it impossible to know what the firm truly earns before partners get paid.
Utilization and billable-hour economics you can't see
Revenue is a function of billable hours times realized rate. Without tracking utilization, write-offs, and effective rate by consultant, you can't tell whether soft margins come from idle benches, under-pricing, or work that never gets billed.
Quarterly estimated taxes on pass-through income
As a partnership or S-corp, firm profit flows to partners' personal returns, and no employer withholds on it. Partners owe quarterly estimates on that income, and missing or under-paying them triggers IRS underpayment penalties and a painful April surprise.
Project and retainer revenue that recognize differently
Fixed-fee projects, monthly retainers, and time-and-materials engagements each earn revenue on a different timeline. Booking cash as it arrives rather than as it's earned overstates good months, understates lean ones, and hides which engagement types actually pay.
How Laya helps Consulting Firms
Clean separation of partner comp from operating results
We structure your chart of accounts and equity so partner draws and distributions sit in equity, never in expenses. Each monthly close shows true operating profit before partner compensation, plus a clear partner-by-partner view of draws taken — so you always know what the firm earned versus what was pulled out.
Utilization and billable-hour reporting
We build your books to track revenue against billable hours so each close surfaces effective rate, realization, and utilization. You see which consultants and engagements drive margin and which write-offs and benched time are quietly eroding it — the numbers you need to price and staff on facts.
Quarterly estimated tax guidance
On the Summit and Peak plans, our licensed CPA partner network projects each partner's pass-through income and gives you quarterly estimated-payment guidance, so partners fund their estimates on time and avoid IRS underpayment penalties. Owner individual returns can be added on at $100–$200/month per return.
Revenue tracking across projects and retainers
We map fixed-fee projects, retainers, and time-and-materials work to the right revenue accounts so your P&L reflects revenue as it's earned, not just as cash lands. That gives you an honest read on monthly performance and a clear comparison of which engagement models are most profitable.
What's included
- Monthly close by the 10th business day
- Partner draw and distribution tracking in equity
- Utilization, realization, and effective-rate reporting
- Project, retainer, and T&M revenue tracking
- Quarterly estimated tax guidance (Summit and Peak)
- Bank, credit card, and expense reconciliation
- Year-end books ready for tax filing
Frequently asked questions
How do you keep partner draws out of our operating expenses?
We book partner draws and distributions to equity, never to expense accounts, and reconcile them per partner. Your monthly P&L shows true operating profit before partner compensation, so you can see what the firm actually earned independent of what each partner pulled out.
Can you report on utilization and billable rates?
Yes. We structure your books so each close ties revenue to billable hours and surfaces effective rate, realization, and utilization. If you run more than a couple of consultants, this is usually where the Peak plan's advisory layer pays for itself by pinpointing where margin leaks.
Do you help partners with quarterly estimated taxes?
On the Summit ($1,000/mo) and Peak ($1,500/mo) plans, our licensed CPA partner network projects your pass-through income and provides quarterly estimated-payment guidance so partners avoid underpayment penalties. Filing individual partner returns is available as a $100–$200/month per-return add-on.
How do you handle project work versus monthly retainers?
We map fixed-fee projects, retainers, and time-and-materials engagements to distinct revenue accounts and recognize revenue as it's earned rather than purely on cash receipt. The result is a cleaner monthly P&L and a clear view of which engagement types are most profitable.
How fast are my books closed each month?
By the 10th business day of the following month, every month. You manage and bill on fresh numbers instead of figures that are six weeks stale — which matters when partner draws and estimated payments depend on knowing this quarter's actual profit.
Do I need to use QuickBooks Online?
Yes. Laya runs entirely on QuickBooks Online as the source of truth, with your bank accounts and credit cards connected digitally. We're cloud-first and remote-only, so everything runs over email and video — QuickBooks Online is included in your plan.
Ready to get your books in order?
Book an intro and we'll show you exactly how Laya works for Consulting Firms.
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