Legal
Books and taxes for private investigators.
Surveillance hours billed against a retainer, mileage and equipment costs billed back to the client, subcontracted investigators on multi-state cases, and law firms paying net 30 while individual clients pay up front. 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
August came in at $8,300. The Voss surveillance case reimbursed mileage and equipment costs separately from the investigator hours, so I kept those apart instead of folding it all into one fee.
- Voss retainer draw, surveillance hoursRetainer billing
- Voss expense reimbursementReimbursed expenses
- Individual client, custody caseDirect-pay case fees
- Subcontracted investigator, out of stateSubcontractor costs
- Background check database subscriptionInvestigation database fees
Why your books are different
Private investigation books go wrong in the same few places.
A generalist sees a check from a client and calls it a fee. Your business is hours billed against a retainer, mileage and equipment costs billed back separately, and two very different kinds of clients paying on two very different schedules.
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1
A retainer gets drawn down by the hour, not spent all at once
A client deposit against future investigation hours is not income until those hours are actually worked and billed, and any unused balance is often owed back if the case ends early, so counting the whole deposit as income the day it lands overstates what has actually been earned.
What we doTracks retainer draws as hours are actually billed against them, so income reflects work performed, not just a deposit that landed. -
2
Reimbursed expenses are not the same as your fee
Mileage, equipment rental, and other costs incurred on a case are often billed back to the client dollar for dollar, and if that reimbursement is counted the same as the investigator's own fee, it inflates what the business actually earned on the case.
What we doBooks reimbursed expenses as their own line, separate from investigation fees, so income reflects only what the business actually earned for its work. -
3
Institutional and individual clients pay on opposite schedules
Law firms and insurance companies often pay on net 30 or net 60 terms, while an individual client hiring for a personal matter typically pays up front, and mixed together, it is hard to tell which kind of client is actually driving the month's cash flow.
What we doKeeps institutional and direct-pay client income in separate lines, so each side of the business shows its own real cash pattern. -
4
Subcontracted investigators on multi-state cases get treated like ordinary costs
A case that crosses state lines often means paying another investigator to cover the out-of-state work, and if that cost is not tracked against the specific case, it is hard to see whether taking on multi-state work is actually worth it.
What we doKeeps subcontractor costs in their own line, so multi-state cases show their true cost to run. -
5
Equipment and database subscriptions are a real, steady cost
Cameras, GPS trackers, and background check database access are ongoing costs that support every case, and treated as incidental instead of a steady operating cost, they are easy to underprice into a flat hourly rate.
What we doKeeps equipment and database costs in their own line, so the real cost of running the business stays visible when setting rates.
Your categories
The categories Gus keeps for a private investigation business.
Set up once for how retainers get billed and what gets reimbursed. You never pick a category. He does, and an accountant checks it.
Money in
- Retainer billingHours billed against a client retainer as investigation work is performed.
- Reimbursed expensesMileage, equipment, and other costs billed back to the client at cost.
- Direct-pay case feesIndividual clients paying up front for a personal investigation.
- Institutional case feesLaw firm and insurance company work billed on invoice terms.
Money out
- Subcontractor costsOther investigators retained for out-of-state or overflow work.
- Investigation database feesBackground check and skip trace database subscriptions.
- Equipment and vehicle costsCameras, GPS trackers, and surveillance vehicle expenses.
- Licensing and bondingState investigator licensing and bond renewal fees.
- Professional liability insuranceAnnual or quarterly premiums, where carried.
What we watch for you
- Retainer balance trend
Whether client retainers are being drawn down faster than they are replenished on active cases.
- Institutional to direct-pay mix
How much of the month is invoice-based institutional work versus up-front individual clients.
- Reimbursed expense share
How much of each deposit is expense reimbursement versus the business's own fee.
- The set-aside
What the business will owe, tracked every month, so tax season is a number you already know.
Ask Gus
Things private investigators 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 keep reimbursed expenses in their own line, since that money just covers what was spent, not what the business actually earned for the investigation work.
No, I keep those two kinds of clients in separate lines, so you can see each one's real pattern instead of an average that fits neither.
If you paid them $2,000 or more this year and they are not on your payroll, that is a 1099-NEC due January 31, and I have been keeping that list current since the case started.
The tax side
The tax side of a private investigation business.
Most of what goes wrong here is treating a reimbursed expense like income, or losing track of a retainer that has not actually been earned yet.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Retainer income counts as it is billedA retainer deposit becomes income as hours are actually billed against it, not the day the deposit lands, and any unused balance owed back is not the business's income at all.
- Reimbursed expenses generally are not taxable profitMoney billed back to a client at cost for mileage or equipment is generally a wash against the expense it covers, rather than profit, when tracked correctly and kept separate from the investigation fee.
- Contractor 1099s for subcontracted investigatorsA subcontracted investigator or skip tracer paid $2,000 or more in 2026 and not on payroll gets a 1099-NEC by January 31.
- Section 179 on surveillance equipmentCameras, GPS trackers, and vehicles used for surveillance can usually be written off in the year they are bought, up to the Section 179 limit, with 100 percent bonus depreciation available for property acquired after January 19, 2025.
Deductions private investigators miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Surveillance cameras and GPS equipment
- Background check database subscriptions
- Vehicle expenses and mileage
- State licensing and bonding fees
- Subcontracted investigator fees
- Professional liability insurance
- Case management software
- Phone and data plan for fieldwork
- Professional association dues
- Office rent and utilities
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 private investigation year, kept every month.
Case volume follows referrals and personal circumstances, not the weather. 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.
- January
Plan the year
Last year's return gets started, the 1099 list for subcontractors is ready, and a monthly set-aside is planned around a mix of institutional and direct-pay work.
- April
Filed, retainers and reimbursements sorted
Your return is filed and signed, with retainer draws and reimbursed expenses kept apart all year long. No surprise bill, because the set-aside has been running since January.
- July
Halfway check
Where the business stands, how retainers are drawing down, and whether the set-aside still fits.
- October
Before year end
A look at any equipment worth buying before December, and a check on licensing and bonding renewal dates.
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 private investigators. 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 private investigators ask first.
How does Gus separate our fee from the mileage and equipment costs we bill back to clients?
Reimbursed expenses are kept in their own line, separate from investigation fees, so income reflects only what the business actually earned for the work performed.
We work with law firms on net 30 and individual clients who pay up front. Does that get tracked differently?
Yes. Institutional and direct-pay client income stay in separate lines, so you can see the real cash pattern of each side of the business.
A retainer client's case ended early with unused hours left on the retainer. What happens to that in the books?
Only the hours actually billed count as income. An unused balance owed back to the client was never the business's income to begin with.
We subcontract another investigator for out-of-state work. Can Gus track that cost against the specific case?
Yes, subcontractor costs stay in their own line, so a multi-state case shows what it actually costs to run.
Our case volume is unpredictable month to month. Does that hurt our taxes?
No. The set-aside is built around what actually lands each month, so a quieter stretch between cases does not leave the business owing more than expected.
Can Gus show me whether institutional or direct-pay clients are actually more profitable?
Yes. The two stay in separate lines, so over time you can see which kind of client is actually worth pursuing for more of the business's marketing effort.
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