Best all-in-one accounting software for consulting businesses
All-in-one finance platform for accounting, bookkeeping, taxes and payroll for consulting businesses
Why consulting business owners love mesha
Hours saved on accounting, bookkeeping and financial admin tasks
saved on bookkeeping and tax fees
accurate financial insights
Financial powerhouse for your consulting business
Intelligent accounting software for modern consulting businesses
Supercharge your consulting business growth and close your books 3X faster
Expert bookkeeping tailored to your consulting business needs
Running a consulting business presents distinct financial challenges. Our expert accounting and bookkeeping services are finely tuned to address the unique financial requirements of consultants and consulting firms. Whether you're an independent consultant or part of a larger consulting organization, we understand the intricacies of your financial landscape and are fully equipped to manage them with precision and efficiency.
Trusted tax management and filing for consulting businesses
Tax Management Software
  • Automated tax calculation for sales, payroll and federal
  • Reminders on taxes and compliance filing
  • Tax ready reports with P&L, expenses and balance sheets
Tax Prep and Filing
  • Instant access to top tax consultants for consulting businesses
  • Proficient counsel on consulting specific tax frameworks and tax-efficient strategies
  • Minimizing tax liabilities and maximizing deductions
  • Stay up to date on dynamic tax laws and regulations impacting the consulting industry

Tax related FAQs for consulting businesses

Do I need to register for an Employer Identification Number (EIN)?

While not always required, obtaining an EIN is advisable for consulting businesses. You must have an EIN if your business has employees or operates as a corporation or partnership. Even if you're a sole proprietor, having an EIN can be beneficial. It allows you to separate your business and personal finances, which simplifies accounting and can protect your Social Security Number. You may also need an EIN to open a business bank account, apply for certain business licenses, or for client and vendor relations.

Self-employment tax comprises both Social Security and Medicare taxes. One way to potentially reduce these taxes is by structuring your business as an S corporation or an LLC (Limited Liability Company) and paying yourself a reasonable salary. By doing this, you can take the rest of your income as distributions, which are not subject to self-employment tax. Consult a tax professional to ensure you set a reasonable salary and meet all legal requirements.

Tax deductions reduce your taxable income, thus lowering the amount of income subject to taxation. For consultants, common deductions include business expenses such as office rent, travel, and marketing costs. Tax credits, on the other hand, directly reduce the amount of tax you owe. These can include credits for research and development or energy-efficient property, among others. Utilizing both deductions and credits can help reduce your overall tax liability.

Consulting for clients in different countries or states can introduce complex tax considerations. Tax laws vary widely, and it's crucial to consult with a tax professional experienced in international or multi-state tax compliance. They can help you navigate tax treaties, determine withholding requirements, and ensure you're meeting your tax obligations in each jurisdiction.

Maintaining meticulous records is crucial. Keep records of income, including invoices and receipts. Document expenses with receipts and records for office space, travel, meals, and any other deductible costs. Contracts, agreements, and legal documents should also be organized. Good record-keeping is essential for tax compliance and audit readiness.

To reduce the risk of an audit, it's essential to keep accurate records, report income honestly, and claim only legitimate deductions. Maintaining consistency and transparency in your financial practices is vital. Consulting with a tax professional can help you navigate the complexities of the tax code and minimize audit risk through thorough compliance and reporting. Additionally, understanding IRS guidelines and staying informed about tax law changes can help protect your business from potential audits.

Making payroll painless for consulting companies

Our comprehensive payroll features help make payroll management super simple.

Stay compliant with mesha
  • Off Cycle payroll and flexible payment schedules

  • Next day direct deposit

  • Payroll Deductions and Garnishments

  • Overtime and reimbursement calculations

  • Payroll and taxes across multiple states

  • Payroll for FTEs, contractors and freelancers

Payroll taxes and compliance

We take care of taxes and compliance to adhere to the local regulations and government declarations.

Stay compliant with mesha
  • Automated tax calculation

  • Tax filing and reporting

  • Tax codes and regulation updates

  • Multi jurisdiction compliance

  • Tax liability tracking

  • Work Classification Compliance

  • SUI Reporting

  • Wage Garnishments and Deductions

Want to start a consulting business, but don't know how to go about it?
Build a foundation of financial success with mesha