Tutoring, test prep & alternative schools
Books and taxes for online tutoring businesses.
Video sessions billed by the hour, marketplace bookings through a listing site that takes its own cut, tutors paid across time zones, and a subscription tool that runs the whole calendar. 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
March made $11,100. The marketplace payout landed short of what students actually paid, so I booked the listing site's cut as its own fee, not a reduction in sales.
- Direct-site session paymentsDirect session fees
- Tutoring marketplace payoutMarketplace bookings
- Tutor payment batchTutor pay
- Video conferencing subscriptionVideo and scheduling tools
- Marketplace commission feeMarketplace fees
Why your books are different
Online tutoring books go wrong in the same few places.
A generalist sees deposits and a software bill. Your business runs on a marketplace that takes its own cut, tutors paid in different countries and currencies, and no rent or mileage at all. When the books do not know that, the marketplace fee quietly eats your margin without anyone noticing.
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1
Marketplace payouts land short and look like a smaller sale
A student books a $60 session through a tutoring marketplace, and the payout to you might be $48 after the site's commission, and if that lower number is booked as the sale, both your revenue and the true cost of the marketplace disappear.
What we doBooks the full session price as revenue and the marketplace's cut as a fee, so pricing and true costs both stay visible. -
2
Tutors paid in different countries blur into one payroll line
A roster of tutors paid through different services in different currencies can all get lumped into one payment expense, making it hard to see what any one tutor or region actually costs the business.
What we doKeeps tutor pay categorized clearly, so you can see the total cost of instruction even when payment methods vary by tutor. -
3
Contract tutors abroad still raise a worker classification question
A tutor working set hours through your booking system, following your lesson plans, and answering to your schedule can look like an employee regardless of where they live, and the rules around paying and reporting for workers outside the country are genuinely different.
What we doFlags the arrangement so the accountant can weigh in on how a given tutor should be classified and paid. -
4
Software subscriptions pile up unnoticed
A video conferencing tool, a scheduling system, a virtual whiteboard, and a payment processor each bill monthly, and scattered across different cards, the real monthly cost of running the business gets lost.
What we doKeeps every recurring tool in one steady line so the true monthly cost of the tech stack is always visible.
Your categories
The categories Gus keeps for an online tutoring business.
Set up once for how sessions get sold and how tutors get paid. You never pick a category. He does, and an accountant checks it.
Money in
- Direct session feesSessions booked through your own site or invoice, paid by card.
- Marketplace bookingsThe full session price from a listing site, before its commission.
- Package prepaymentsBlocks of sessions sold up front and drawn down as they are used.
- Group class feesMulti-student virtual classes billed apart from one-on-one sessions.
Money out
- Tutor payPayments to tutors, tracked by tutor regardless of currency or payment method.
- Marketplace feesThe commission a listing site keeps before your payout.
- Video and scheduling toolsVideo conferencing, virtual whiteboards, and the booking calendar.
- Payment processing feesWhat a payment processor keeps on card and international payments.
- Marketing and referralsSearch ads, marketplace profile boosts, and referral incentives.
- Liability insuranceCoverage for the business working directly with students online.
What we watch for you
- Marketplace share of revenue
How much of your income depends on a listing site's commission rather than direct bookings.
- Tutor pay share
What tutors cost against total revenue, tracked consistently across payment methods.
- Package liability
Prepaid session blocks not yet delivered, whether sold direct or through a marketplace.
- The set-aside
What you will owe, tracked every month, so April is a number you already knew.
Ask Gus
Things online tutoring 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.
No. I booked the full session price as your sale and the difference as the marketplace's fee, so your real pricing still shows up correctly.
Yes. I track every tutor's pay in one place regardless of how they're paid, so you can see total instruction cost no matter the method.
That is worth a real look. I flagged the arrangement so the accountant can walk through how pay and classification should work for her specifically.
The tax side
The tax side of an online tutoring business.
Most of what goes wrong here is a marketplace fee hiding inside revenue and tutor pay scattered across payment methods. Fix the labels and the return follows.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Marketplace fees as a cost, not a discountA tutoring marketplace's commission is a deductible business cost, tracked separately from the full session price so revenue is never understated.
- Tutor classificationA tutor who works your set schedule, follows your lesson plans, and books through your system is often an employee regardless of where they live, though rules for workers outside the country differ and are worth the accountant's review.
- Contractor 1099s for domestic tutorsAny US-based tutor not on payroll, paid $2,000 or more in 2026, gets a 1099-NEC by January 31. Gus keeps that list running.
- The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when marketplace fees and tutor pay are tracked cleanly all year.
Deductions online tutoring businesses miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Video conferencing subscription
- Scheduling and calendar software
- Virtual whiteboard tools
- Payment processing fees
- Marketplace profile fees
- Home office for running the business
- Business phone and internet
- Liability insurance
- Website hosting
- Marketing and referral incentives
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 online tutoring year, kept every month.
Bookings come from time zones all over, but your taxes run on the US calendar. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, the tutor 1099 list gets ready, and the monthly set-aside gets planned.
- April
Filed. Done.
Your return is filed and signed. No surprise bill, because the set-aside has been running since January.
- July
Midyear check
Where you stand, and whether the marketplace fee share of your revenue has shifted enough to change what you will owe.
- October
Before the year-end push
Gus looks at any software or equipment worth buying, and any moves worth making before December.
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 online tutoring businesses. 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 online tutoring owners ask first.
Can Gus tell me how much the marketplace is really costing me?
Yes. He books the full session price as your sale and the site's commission as its own cost, so you can see exactly what the marketplace keeps against direct bookings.
My tutors are all over the world and get paid different ways. Is that a problem?
No. Gus tracks pay by tutor regardless of the payment method, so total instruction cost is always visible even with a mixed roster.
Do I still need to send 1099s if my tutors work remotely?
For any US-based contract tutor paid $2,000 or more this year, yes, a 1099-NEC by January 31. Gus keeps the list running so it is ready.
I have no office and no mileage. Does that mean fewer deductions?
It means different ones. Your software subscriptions, home office, and internet costs are the deductions that matter most here, and Gus tracks all of them.
My books are a mix of PayPal, Stripe, and marketplace payout statements. Can Gus sort that out?
Yes. Send what you have from each source and he sorts it into one clean set of books. Most owners know exactly 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