Staffing, recruiting & HR services
Books and taxes for executive search firms.
Retainers paid in thirds, a placement fee that isn't fully earned until the guarantee period runs out, and a partner splitting a search with an outside recruiter. Gus sorts it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
May came in at $54,800. The Hartline CFO search closed, but a third of that fee is still inside the 90-day guarantee, so I held it apart from money you've fully earned.
- Hartline Group retainer, third installmentRetainer income
- Meridian Partners placement feePlacement fees
- Outside recruiter splitPartner fee splits
- Executive candidate flightCandidate travel
- Delta, client meeting travelRecruiter travel
Why your books are different
Executive search books go wrong in the same four places.
A generalist sees a big deposit and calls it a good month. Your business is a retainer paid in installments before the work is even close to done, a fee that isn't really earned until the guarantee period passes, and travel costs that swing wildly by search. When the books don't know that, the number on the screen overstates what you actually kept.
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1
A retainer gets counted before the work is done
A search retainer paid in thirds, on engagement, at the candidate slate, and at placement, isn't one lump sale. Booking the first installment as fully earned income overstates what the firm has actually delivered on.
What we doTracks each retainer installment against where the search actually stands, so income reflects work completed, not just cash received. -
2
The guarantee period isn't the full fee yet
Most search contracts carry a 90-day to one-year replacement guarantee. If the placed executive doesn't work out, the firm owes a free replacement search or a refund. Counting the entire fee as kept the day it's invoiced overstates income that might still come back out.
What we doFlags fees still inside a guarantee period so the number reported doesn't count money that could still be clawed back. -
3
A partner split looks like a plain vendor bill
Splitting a fee with an outside recruiter or another search partner on a joint engagement is common, but paid like a regular bill with no tracking, the 1099 for that partner gets missed at year end.
What we doFlags any fee split paid to someone not on payroll so a 1099 is ready when the year crosses the threshold. -
4
Candidate and recruiter travel gets lumped together
Flying an executive candidate in for final interviews and a recruiter's own travel to meet a client are both real costs, but blended into one travel line, you lose track of what each search actually costs to run.
What we doKeeps candidate travel and recruiter travel in separate lines so true cost per search stays visible.
Your categories
The categories Gus keeps for an executive search firm.
Set up once for retainer-based and fee-only search work. You never pick a category. He does, and an accountant checks it.
Money in
- Retainer incomeSearch engagements billed in installments, tracked against how far the search has progressed.
- Placement feesThe final fee earned once a candidate is placed, usually a percentage of first-year compensation.
- Guarantee-held feesPortions of a placement fee still inside a replacement guarantee period, kept apart from fully earned income.
- Expense reimbursementsClient repayment for candidate travel or search-related costs billed back.
Money out
- Partner and recruiter fee splitsPayments to outside recruiters or search partners on joint engagements, tracked for 1099s.
- Candidate travel and interview costsFlights, hotels, and meals for executive candidates flown in for finalist rounds.
- Recruiter travelThe firm's own travel to meet clients and conduct in-person searches.
- Research and sourcing toolsExecutive database access, LinkedIn Recruiter, and background verification services.
- Professional liability insuranceCoverage for the advisory nature of search work.
- Office and administrative overheadSupport staff, phone, and search management software.
What we watch for you
- Fees still in guarantee
What's placed but not yet fully earned. Keeps you from spending money that might come back out.
- Days from retainer to placement
How long each search takes. A number that's stretching out means pipeline or sourcing needs a look.
- Fee split cost
What partner or referral splits are actually costing against total fees earned this year.
- The set-aside
What you'll owe on fees actually earned, tracked every month, so April is never a guess.
Ask Gus
Things executive search owners ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
Not quite yet. A third of it is still inside the 90-day guarantee, so I'm holding that apart until the window passes and it's actually yours to keep.
Yes. If they're paid $2,000 or more this year and aren't on your payroll, they'll need a 1099-NEC. I'm keeping that split flagged so it's ready in January.
Candidate travel this quarter is running well below what those searches are earning, so it's paying for itself. I keep it separate from your own travel so you can see that clearly.
The tax side
The tax side of an executive search firm.
Most of what goes wrong here is timing, not classification. Retainers booked too early, guarantees counted as already kept, and a partner split that never gets a 1099.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Revenue timing on retainersA retainer paid in installments should be tracked against the work actually done, not counted as fully earned the moment cash lands, so a month's income reflects real progress on the search.
- Form 1099-NEC for fee splitsAny outside recruiter or search partner paid $2,000 or more in 2026 for a shared engagement who isn't on payroll gets a 1099-NEC by January 31.
- Self-employment tax for owner-operatorsA solo or small-partnership search firm owner who isn't paid through payroll owes 15.3 percent self-employment tax on profit, up to the Social Security wage base of $184,500.
- The pass-through deductionMost owners can take up to 20 percent of business profit off their taxable income, a benefit that comes out right when retainer and fee timing is tracked accurately all year.
Deductions executive search firms miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Executive candidate database subscriptions
- LinkedIn Recruiter and sourcing tools
- Candidate travel and interview costs
- Recruiter travel to client meetings
- Professional liability insurance
- Search management software
- Trade association and search network dues
- Continuing education and search certifications
- Phone and laptop for search consultants
- Home office costs for remote consultants
- Card processing fees on client payments
- Referral bonuses for candidate or client leads
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
An executive search year, kept every month.
Searches run on their own multi-month timeline, and guarantee periods stretch well past when a fee is invoiced. Your team keeps track of both, all year. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Open the year's books
Last year's return gets started, any partner-split 1099s go out, and a monthly set-aside begins so April isn't decided by whichever search happens to close.
- April
Signed between searches
Your return is filed and signed without pausing an active search. No surprise bill, since the set-aside has been building since January.
- July
Where the searches stand
Where retainer income and guarantee-held fees stand at the midpoint, and what you'll actually owe.
- October
Before year-end closings
Many searches try to close before December. Gus looks at what's still in guarantee and what's fully earned before the books close for the year.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for executive search firms. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions executive search owners ask first.
Should I count a retainer as income the day it's paid?
Not entirely. Gus tracks each installment against how far the search has actually progressed, so the monthly number reflects work done, not just cash received.
What happens to the books if a placement doesn't work out during the guarantee period?
Gus keeps guarantee-held fees flagged and apart from fully earned income the whole time, so if a refund or replacement search is owed, it doesn't come as a surprise hit to the books.
I split fees with another search firm sometimes. Does that complicate things?
It just needs tracking. Gus flags any partner or referral split paid to someone not on your payroll so a 1099 is ready if the year crosses the threshold.
Do I need separate accounting for retained versus contingency searches?
Retained work gets tracked by installment against progress, while contingency fees are booked when the placement closes. Gus keeps both visible without you having to sort it yourself.
Is candidate travel a real write-off?
Yes, flying in finalist candidates is an ordinary cost of running a search. Gus keeps it separate from your own recruiter travel so the true cost per search stays clear.
My books are behind after a slow stretch with no searches closing. Can we catch up?
Yes. Send the bank statements and retainer agreements you have. Gus sorts out what's earned versus still in guarantee, and most owners know where they stand within a week.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
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What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever