Serving the san francisco bay area + beyond since 1976
Serving the san francisco bay area + beyond since 1976
Professional Service Firms
We Understand Professional Service Firms Because We Are One
In a professional services firm, your people, time, and expertise drive the business. At B+Co, we understand these challenges firsthand—because as an accounting firm, we operate within the same type of business structure as many of our clients.
But strong revenue doesn’t always translate into strong profitability. Rising compensation costs, project overruns, uneven utilization, slow collections, ownership changes, and tax obligations can put pressure on cash flow and margins.
We help architecture, engineering, interior design, law, public relations, consulting, and other professional services firms understand what’s happening behind the revenue—and what may need attention.
That means looking beyond tax returns and financial statements to the decisions affecting profitability, cash flow, compensation, growth, and long-term value.
50
years
EST. 1976
50
years
EST. 1976
Professional Service Firms
Professional Service Firms
We Understand Professional Service Firms Because We Are One
In a professional services firm, your people, time, and expertise drive the business. At B+Co, we understand these challenges firsthand—because as an accounting firm, we operate within the same type of business structure as many of our clients.
But strong revenue doesn’t always translate into strong profitability. Rising compensation costs, project overruns, uneven utilization, slow collections, ownership changes, and tax obligations can put pressure on cash flow and margins.
We help architecture, engineering, interior design, law, public relations, consulting, and other professional services firms understand what’s happening behind the revenue—and what may need attention.
That means looking beyond tax returns and financial statements to the decisions affecting profitability, cash flow, compensation, growth, and long-term value.
The goal: Better visibility + stronger profitability + fewer surprises + more options for the future.
Whether you’re evaluating staffing, improving margins, adding an owner, expanding, managing tax exposure, or considering a future transition, we help you understand the financial implications before important decisions are made.
The goal:
Better Visibility
Stronger Profitability
Fewer Surprises
More Options For The Future.
For 50 years, we have helped families make informed decisions through life’s important financial milestones. We take the time to understand each client’s unique goals and work closely with attorneys, wealth advisors, bankers, and other trusted professionals to create coordinated strategies that support wealth preservation, family legacy, and future generations.
Let’s Talk About Your Firm +
How We Help Professional Services Firms
Profitability + Performance Analysis
Understand which services, projects, clients, or areas of the business are contributing to profitability—and where time and resources may be eroding margins.
Cash Flow + Working Capital
Evaluate billing, collections, work in progress, operating expenses, and cash needs so you can identify potential pressure points and plan ahead.
Tax Planning + Compliance
Plan for federal and state tax obligations throughout the year while evaluating how compensation, entity structure, investments, growth, and other business decisions may affect your tax position.
Financial Reporting + Forecasting
Use timely financial information, budgets, forecasts, and performance indicators to understand where the firm stands and make better-informed decisions about what comes next.
Ownership + Compensation Planning
Evaluate the financial and tax implications of admitting new owners, changing ownership percentages, structuring compensation, or preparing for an ownership transition.
Growth + Transition Planning
Understand the financial implications of hiring, expansion, acquisitions, succession, or a potential sale before committing resources or making decisions that may be difficult to reverse.
Services for Professional Service Firms
Advisory
When you’re running a business or managing significant financial decisions, it can be difficult to know which move to make next. We help you understand your options, improve profitability, plan for growth, and prepare for major transitions—so you can make decisions today that support where you want to be tomorrow.
Tax Planning & Compliance
Tax decisions made throughout the year can affect how much you ultimately owe. We help you plan ahead, stay current with changing tax rules, and identify opportunities to reduce your tax burden—so you can avoid surprises and keep more of what you’ve earned.
Assurance
When others rely on your financial statements, you need to know the information is reliable and meets their requirements. We help you get the right level of assurance, meet reporting obligations, and identify issues that may need attention—so you can reduce risk and move forward with greater confidence.
Frequently Asked Questions
What financial metrics should a professional services firm monitor?
The right metrics depend on the firm’s business model, but professional services firms often benefit from monitoring revenue, gross margin, operating margin, utilization, realization, labor costs, work in progress, accounts receivable, cash flow, and profitability by project, service line, or client. The purpose isn’t to track more numbers. It’s to identify the information that helps you make better business decisions.
Why can a professional services firm have strong revenue but weak cash flow?
Revenue doesn’t necessarily mean cash has been collected. Work in progress, billing delays, slow-paying clients, payroll, owner distributions, tax payments, and other operating expenses can create a significant difference between reported revenue and available cash. Understanding that timing can help you anticipate cash needs instead of reacting to a shortage.
How can we determine whether our projects or clients are actually profitable?
Revenue alone doesn’t tell you whether an engagement is profitable. Understanding profitability may require evaluating the labor and other costs associated with delivering the work, utilization, realization, write-downs, project scope, pricing, and collection history. Better project and client-level information can help management make more informed decisions about pricing, staffing, and where the firm should invest its resources.
What is work in progress, and why does it matter?
Work in progress, or WIP, generally represents work performed that has not yet been billed or otherwise recognized under the firm’s accounting methodology. For project-based professional services firms, monitoring WIP can provide insight into billing cycles, project performance, cash flow, and potentially unbilled work that may require management attention.
When should we evaluate our firm's entity structure?
Entity structure should be evaluated when circumstances change—not simply when the business is formed. Changes in profitability, ownership, compensation, expansion into additional states, acquisitions, succession plans, or a potential transaction may create reasons to revisit whether the existing structure continues to support the firm’s objectives.