What type of expense is consulting fees?

Financial consulting fees are generally classified as “professional services”. This expense category covers a wide range of financial consulting services, including financial planning, investment advice and tax preparation. For accounting, consulting services must go through the “Organizational Expenses” account. The recording of consultation and informational support expenses must comply with the requirements that apply to the documentation of all other expenses accordingly.

Which account is chosen to document a legal consultation depends on the nature of the services, as well as the purposes for which the consultation was requested from specialists. Once you start working for yourself, you should get used to keeping track of your expenses as a self-employed person, since they can appear as business deductions to reduce your taxable income (you can track these deductions using a business expense spreadsheet).

Rós Kimberl
Rós Kimberl

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