Legal

Books and taxes for mediators.

Two parties splitting the cost of one session, court roster cases paid on the court's own schedule, cancellation fees, and multi-session commercial matters. 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
JuneExample month
$7,800
what you made

June came in at $7,800. Both sides in the Prater matter paid their half separately, so I matched the two deposits to the same session instead of counting it as two jobs.

  • Prater mediation, party A halfSession fees
  • Prater mediation, party B halfSession fees
  • Court roster fee, small claims panelCourt roster pay
  • Mediator certification renewalCertification and training
  • Office rentOffice and overhead
Money in$14,000
Money out$6,200
Set aside for taxes$1,400
An example month. Yours will have your numbers.

Why your books are different

Mediation books go wrong in the same few places.

A generalist sees two deposits and counts two jobs. Your business is one session paid by two parties in separate checks, court roster work paid on the court's own schedule, and cancellation fees that do not look like a normal session charge.

  1. 1

    Two parties, one session, two deposits

    When both sides in a mediation split the cost, the money often arrives as two separate payments on two different days, and if they are not matched to the same session, it looks like the practice had two jobs instead of one.

    What we doMatches split payments to the same session, so the books reflect one job paid two ways, not two separate wins.
  2. 2

    Court roster fees run on the court's schedule

    Mediation assigned through a court roster or panel is often paid on a fee schedule set by the court, and that payment can lag behind when the session actually happened, unlike a private client who pays at the time of service.

    What we doTracks court roster income against when it is actually paid, so a normal payment lag does not read as a slow month.
  3. 3

    A cancellation fee is not a normal session charge

    A late cancellation or no-show fee is usually smaller than a full session fee and covers time held on the calendar rather than a completed mediation, and mixed in with regular session income, it distorts what a typical session is actually worth.

    What we doKeeps cancellation and no-show fees in their own line, separate from completed session income.
  4. 4

    A multi-session commercial matter looks like one job for weeks

    A complex commercial or workplace mediation can run across several sessions over weeks or months, and if each session is not tracked as it happens, it is hard to see how the matter is actually progressing financially until it wraps up.

    What we doBooks each session as it is paid, so a multi-session matter shows its progress instead of arriving as one lump at the end.
  5. 5

    Certification and training costs are steady, not incidental

    Mediator certification, continuing education, and panel renewal fees recur every year and are easy to treat as a one-off cost instead of the predictable, recurring cost of staying qualified to practice.

    What we doKeeps certification and training costs in their own line, so this steady cost of doing business stays visible.

Your categories

The categories Gus keeps for a mediation practice.

Set up once for how sessions get paid and by whom. You never pick a category. He does, and an accountant checks it.

Money in

  • Session feesPayments for completed mediation sessions, from one or both parties.
  • Court roster payFees for cases assigned through a court panel or roster.
  • Cancellation and no-show feesSmaller fees for time held on the calendar when a session does not go forward.
  • Retainer drawsFees billed against a retainer on a multi-session commercial matter.

Money out

  • Certification and trainingMediator certification, continuing education, and panel renewal fees.
  • Office and overheadRent, utilities, and scheduling software.
  • Malpractice or professional liability insuranceAnnual or quarterly premiums, where the practice carries it.
  • Marketing and referral outreachCosts to build relationships with attorneys and courts that refer cases.
  • Payment processing feesCard and online payment processing costs.

What we watch for you

  • Split payment matching

    Whether both halves of a split session fee have actually landed, so a job is not miscounted as unpaid.

  • Court roster payment lag

    How far behind court roster payments typically run compared to when a session happened.

  • Cancellation rate

    How often sessions cancel or reschedule, worth knowing when planning the calendar.

  • The set-aside

    What the practice will owe, tracked every month, so tax season is a number you already know.

Ask Gus

Things mediators 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.

Both sides in the Prater case paid their half on different days. Does that count as two sessions?

No, I matched both payments to the same session, so it shows up as one completed mediation paid two ways, not two separate jobs.

A court roster case I mediated in March just got paid this month. Is that normal?

Usually yes. Court roster pay often lags behind the actual session, so I track it against when it is paid rather than expecting it the same week.

Do I need to send anyone a 1099 this year?

If you paid a contractor, such as a scheduling assistant, $2,000 or more this year and they are not on payroll, yes, a 1099-NEC by January 31. I keep that list running as the year goes.

The tax side

The tax side of a mediation practice.

Most of what goes wrong here is timing between when a session happens and when court-assigned work actually gets paid, plus keeping a steady certification cost visible.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Court roster income counts when paidFees from court-assigned mediation count as income when the court or panel actually pays them, which can lag behind the date the session took place.
  • Self-employment tax applies to what you earnA mediator working as a sole proprietor or through a pass-through entity owes self-employment tax of 15.3 percent on net earnings, on top of regular income tax, which the monthly set-aside plans for.
  • Contractor 1099s for scheduling and admin helpA contract scheduler or administrative assistant paid $2,000 or more in 2026 and not on payroll gets a 1099-NEC by January 31.
  • Quarterly estimated taxes on session incomeA mediator without payroll withholding typically owes estimated payments on April 15, June 15, September 15, and January 15, based on what sessions and court roster work actually bring in.

Deductions mediators miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Mediator certification and renewal fees
  • Continuing education courses
  • Professional liability insurance
  • Scheduling and case management software
  • Office rent and utilities
  • Mileage to sessions held off-site
  • Payment processing fees
  • Marketing and referral outreach
  • Professional association dues
  • Printing for session agreements

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

A mediation practice year, kept every month.

Sessions book up on the calendar, not the season. Gus keeps the set-aside steady either way. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the 1099 list for contract help is ready, and a monthly set-aside is planned around expected session volume.

  2. April

    Filed, split payments and all

    Your return is filed and signed, with every split session payment matched up and accounted for. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where the practice stands, how court roster payments have been trending, and whether the set-aside still fits.

  4. October

    Before year end

    A look at certification renewals coming up and any equipment or software worth buying before December.

What you get

Starts at$197a month

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 mediators. 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 mediators ask first.

Both parties pay us separately for the same session. Does Gus handle that?

Yes. He matches both payments to the same session, so the books show one completed job paid two ways instead of two separate deposits that look like unrelated work.

Court roster payments always arrive later than the session date. Is that a problem?

No. Gus tracks that income against when it is actually paid, so a normal payment lag reads correctly instead of looking like a slow month.

We charge a smaller fee when a session is cancelled last minute. Does that get mixed in with regular fees?

No, cancellation and no-show fees are kept in their own line, so they never distort what a completed session is actually worth.

Some matters take several sessions over a few months. How does that get tracked?

Each session is booked as it is paid, so a multi-session matter shows its progress along the way rather than arriving as one number at the end.

I mediate as a sole proprietor with no employees. What tax do I actually owe on my own pay?

Self-employment tax of 15.3 percent applies to your net earnings, on top of regular income tax. Gus builds the monthly set-aside around both, so April is a number you already know.

Can Gus show me whether court roster work or private clients are worth more to the practice?

Yes. Court roster pay and private session fees stay in separate lines, so over time you can see which source of work is actually paying better per session.

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.

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