Industries
Professional services
Finbryn builds project-level revenue recognition for Canadian engineering, architecture and consulting firms, estimates unbilled work in progress at month end, and keeps partner draws out of payroll. GST/HST on billed services is tracked by province, and books close by business day five so engagement profitability is visible while the quarter is still open.
Management report
Illustrative client · August 2026
CAD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Exceptions report
Where the books usually hurt
Project-based billing means revenue recognition needs to follow the work performed, not just the invoice date
Unbilled work in progress at month end never gets estimated, so profitability numbers run behind reality
Partner or owner draws get mixed into payroll or general expense instead of tracked as equity distributions
Multiple client engagements running at once make it hard to see which ones are actually profitable
Project billing needs project-level revenue rules
A professional services firm billing by project or retainer cannot just book revenue on the invoice date. Work performed but not yet billed at month end, the unbilled work in progress, has to be estimated and reflected in the financials, or a firm's reported profitability lags a month or more behind reality. Finbryn builds a work-in-progress estimate from time or milestone data where it exists, and reviews it every close rather than once a quarter.
Partner and owner draws are another place Canadian firm books tend to blur: a draw is an equity distribution, not payroll or a general expense, and mixing the two distorts both the profit and loss and the T2 return that follows it. We track draws separately from the start, against the province-specific rules that already apply to the firm's structure.
GST/HST across a multi-province client base
A firm billing clients in Ontario, Alberta and Quebec in the same month is applying different tax treatment on each invoice: HST in participating provinces, GST plus a separate provincial tax elsewhere. We track that split by client and by province so the GST/HST return, when prepared, reconciles cleanly to what was actually billed, and we watch filing frequency as revenue grows past the annual, quarterly and monthly thresholds set by the Canada Revenue Agency.
What changes when you switch to Finbryn
You keep the QuickBooks Online, Xero or Sage 50 file, with engagement or client-level tagging so margin by project is visible, not just total revenue for the month. Corporate tax preparation support is handed off ahead of the six month T2 filing deadline, filed and signed by a credentialed Canadian preparer or your firm's own EFILE-registered contact, and every file is reviewed by a senior principal before it reaches you.
Questions
Frequently asked questions: Professional services
Can you estimate unbilled work in progress at month end?
Yes, using time or milestone data from your project system, reviewed as part of every monthly close.
Do you separate partner draws from payroll?
Yes, draws are tracked as equity distributions from the first month, never mixed into payroll or general expense.
Do you handle billing across multiple provinces?
Yes, GST/HST treatment is tracked by client and province so the return reconciles to what was actually billed.
Do you file our GST/HST and T2 returns for us?
We prepare both. Filing and signature rest with a credentialed Canadian preparer, your firm's EFILE contact, or your own CRA account.
Do you track profitability by client engagement, not just for the firm overall?
Yes. Revenue, direct labour and reimbursable costs are coded so each active engagement shows its own margin, not just a firm-wide total. That surfaces which clients or project types are actually profitable well before year end, using the same monthly books.
Can you estimate work in progress at month end?
Yes, unbilled work in progress can be estimated and reflected in the monthly financials where time or milestone data is available.
Do you track profitability by client engagement?
Yes, income and direct costs can be tagged by engagement so margin is visible each month.
What are the common bookkeeping challenges for a professional services business?
Beyond the basics, partner or owner draws get mixed into payroll or general expense instead of tracked as equity distributions and multiple client engagements running at once make it hard to see which ones are actually profitable come up often in this industry. We build the chart of accounts and reconciliation process around those specific patterns rather than a generic template that ignores how the business actually operates.
What software do you support for professional services?
We work inside QuickBooks Online and Xero, along with the other tools listed on this page that are common in the professional services industry. If you have no file yet, we set one up in your name so you own it from day one.
Related services
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
- BookkeepingCatch-up and cleanup bookkeepingMonths or years of books brought up to date and reconciled, with a written record of every adjustment, so monthly bookkeeping can start from a clean base.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.