Tutoring, test prep & alternative schools

Books and taxes for private tutoring companies.

Hourly sessions billed by the half hour, package prepayments, a roster of tutors paid per lesson, and mileage between three houses a day. 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
OctoberExample month
$8,800
what you made

October brought in $8,800. Two families paid for a ten-session package this month, so I only counted the four sessions that actually happened.

  • Stripe session paymentsSession fees
  • Smith family packagePrepaid packages
  • Tutor payroll runTutor wages
  • Contract tutor payout1099 tutor pay
  • Shell, tutor mileageTravel and mileage
Money in$31,200
Money out$22,400
Set aside for taxes$1,900
An example month. Yours will have your numbers.

Why your books are different

Private tutoring books go wrong in the same few places.

A generalist sees deposits and payroll. Your business is sessions sold in packages, tutors paid a dozen different ways, and mileage that piles up between houses. When the books do not know that, the number at the end of the month lies to you.

  1. 1

    Package prepayments book too early

    A family pays $900 up front for a ten-session package used over two months. Booked as October income the day it lands, September and October both look wrong, one padded and one thin.

    What we doCounts package revenue as sessions actually happen, so a big prepayment does not fake out one month at the expense of the next.
  2. 2

    Tutors paid per lesson look like contractors when they are not

    A tutor who follows your schedule, uses your intake worksheets, and shows up to the families you assign is usually an employee, even if you pay a flat rate per lesson.

    What we doKeeps 1099 and W-2 tutor pay in separate lines and flags anyone whose schedule and duties look like an employee's.
  3. 3

    Mileage between houses disappears

    A tutor driving to three or four homes an afternoon racks up real miles, and if nobody logs them trip by trip, that deduction is gone by April.

    What we doKeeps mileage as its own line against the standard rate so it never gets lost.
  4. 4

    Sibling discounts blur what a family actually owes

    A second child at half price, or a missed-session credit, changes what was billed after the invoice already went out, and the books can drift from what actually hit the account.

    What we doReconciles what was deposited against what was billed, so discounts and credits show up as themselves instead of muddying the month.
  5. 5

    Diagnostic sessions get folded into ordinary tutoring

    A one-time placement test or intake assessment gets billed the same as a regular lesson, so you can never tell what assessment work earns versus what weekly sessions bring in.

    What we doKeeps intake and diagnostic fees in their own category, separate from ongoing session revenue.

Your categories

The categories Gus keeps for a private tutoring company.

Set up once for how families pay and how tutors get paid. You never pick a category. He does, and an accountant checks it.

Money in

  • Session feesSingle sessions billed by the hour or half hour, paid by Stripe, Square, or check.
  • Prepaid packagesBlocks of sessions paid up front and drawn down as they happen.
  • Intake and diagnostic feesPlacement testing and the first assessment session, billed apart from ongoing tutoring.
  • Referral marketplace bookingsClients found through Wyzant or a similar listing that takes a cut.

Money out

  • Tutor wagesW-2 pay for tutors on a set schedule.
  • 1099 tutor payContract tutors paid per lesson who set their own hours.
  • Travel and mileageGas and miles for in-home sessions across town.
  • Curriculum and worksheetsWorkbooks, practice tests, and printed materials for each subject.
  • Scheduling softwareThe booking and invoicing tool that runs your calendar.
  • Liability insuranceCoverage for tutors working alone in a family's home.
  • Marketing and referralsLocal ads, referral bonuses, and marketplace profile fees.

What we watch for you

  • Active family count

    The base your session revenue rests on. A steady roster beats one great month.

  • Tutor pay share

    Wages and per-lesson pay against total revenue. Shows what tutoring actually costs against what sessions bring in.

  • Package liability

    Sessions paid for but not yet used. It is money already collected, not yet earned.

  • The set-aside

    What you will owe, tracked every month, so April is a number you already knew.

Ask Gus

Things private 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.

A family paid for ten sessions but we've only done six. Does that count as all income now?

No. I only booked the six sessions that happened. The other four sit as unearned until they happen, so your numbers stay honest.

One of my tutors set her own hours and picks her own students. Contractor, right?

That leans contractor, yes. I keep her pay separate from staff wages so it is easy to see either way.

Do I owe my tutors any tax forms?

Any tutor paid $2,000 or more this year who is not on payroll gets a 1099-NEC by January 31. I keep that list running all year.

The tax side

The tax side of a private tutoring company.

Most of what goes wrong here is timing and labels. Sessions counted before they happen, a tutor filed the wrong way, and mileage nobody logged.

What your return has to get right

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

  • Tutor classificationA tutor who works your schedule, uses your intake process, and teaches families you assign is usually an employee, no matter what the pay is called. Getting it wrong gets expensive.
  • Contractor 1099sAny contract tutor paid $2,000 or more in 2026 gets a 1099-NEC by January 31. Gus keeps the running list.
  • Mileage deductionBusiness mileage for in-home tutoring is deductible at 72.5 cents a mile through June 2026 and 76 cents after, if it is logged.
  • The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when the books track sessions honestly all year.

Deductions private tutoring companies miss

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

  • Mileage between sessions
  • Practice tests and workbooks
  • Scheduling software
  • Liability insurance
  • Background check fees
  • Marketing and referral fees
  • Phone plan for scheduling
  • Home office for planning
  • Professional development
  • Card processing fees

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 tutoring year, kept every month.

Families sign up any month, but school terms drive the swings. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    New term, new plan

    Last year's return gets started, the tutor 1099 list is ready, and you get a monthly set-aside so April is already handled.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since January.

  3. July

    Summer check-in

    Where you stand while the roster thins out for summer, and whether the school year's packages changed what you will owe.

  4. October

    Before the fall rush

    Report cards drive new sign-ups this month. Gus looks at 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 private tutoring companies. 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 tutoring owners ask first.

Can Gus handle a mix of W-2 tutors and 1099 tutors?

Yes. He keeps them in separate lines from the start, so wages and contract pay never blend together, and you always know what each side of the roster costs.

Families pay for packages of sessions. How does that get booked?

As sessions happen, not the day the package is paid for. That keeps one big prepayment from making a single month look better than it was.

Do I need to track mileage myself?

You send the trips or the total miles when Gus asks, and he logs them against the standard rate. It is one of the most commonly missed deductions in this business.

I run my roster through Wyzant. Does that change anything?

No. Gus works from your bank statement and the payout, whatever the source, gets sorted into session fees. A marketplace fee gets its own line as a cost.

My books are a mess from last year. Can Gus still take this on?

Yes. Send what you have and he sorts it. 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.

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