Tutoring, test prep & alternative schools
Books and taxes for SAT and ACT test prep businesses.
Group class enrollment that spikes before each test date, private coaching billed by the hour, practice test proctoring fees, and instructors paid per class. 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
February came in at $13,700. Enrollment for the spring test dates picked up early this year, so I flagged that the bump is seasonal, not a new normal.
- Spring cohort enrollmentGroup class fees
- Private coaching invoicesPrivate coaching
- Proctored practice test feesPractice test fees
- Instructor payroll runInstructor wages
- Test center venue rentalVenue rental
Why your books are different
SAT and ACT test prep books go wrong in the same few places.
A generalist sees enrollment fees and a rented room. Your business runs on a test-date calendar, cohorts that fill and empty in weeks, and instructors paid by the class. When the books do not know that, a busy month before a test date looks like growth that never repeats.
-
1
Cohort enrollment gets counted the day it is paid
A family pays $1,200 for an eight-week course six weeks before the class even starts, and if that lands as income the day it is paid, the month it was sold in looks great while the months the class actually runs look thin.
What we doRecognizes group class revenue as the weeks of instruction happen, so a strong sales month does not fake out the teaching months that follow. -
2
Practice test proctoring gets folded into class fees
A standalone proctored practice test, often a loss leader to bring in new students, gets billed and booked the same as a full course, so you cannot see whether the practice test itself makes money or just fills the funnel.
What we doKeeps practice test fees in their own category so you can see what they earn separate from full course enrollment. -
3
Venue rental for group classes hides in occasional expenses
Renting a classroom or library meeting room only during active cohorts makes the expense look occasional, when it is really a predictable cost tied to every test-date cycle.
What we doTies venue rental to the cohort it belongs to, so the real cost of running each class cycle is visible. -
4
Instructors paid per class blur with private coaching pay
The same instructor might teach a group cohort for a flat rate and privately tutor students for an hourly rate, and if both get paid from one lump sum, you cannot see what group teaching costs against what private coaching brings in.
What we doSplits instructor pay by the type of work, so group class cost and private coaching cost stay separate.
Your categories
The categories Gus keeps for a test prep business.
Set up once around the test-date calendar. You never pick a category. He does, and an accountant checks it.
Money in
- Group class feesCohort-based courses tied to a specific test date.
- Private coachingOne-on-one sessions billed by the hour.
- Practice test feesStandalone proctored practice tests, whether free or paid.
- Materials and workbook salesPrinted practice books sold apart from tuition.
Money out
- Instructor wagesPay for group class teachers, split from private coaching pay.
- Private coaching payHourly pay for one-on-one sessions, kept apart from class pay.
- Venue rentalClassroom, library, or community space rented for cohort sessions.
- Practice test materialsOfficial practice tests and answer sheets, licensed or purchased.
- Scheduling softwareThe tool that manages cohort sign-ups and coaching calendars.
- Marketing and local adsSearch ads timed to each test-date cycle and school outreach.
- Card and payment feesProcessing costs on tuition and coaching payments.
What we watch for you
- Cohort fill rate
Enrolled seats against class capacity. It drives most of your revenue swings.
- Instructor pay share
Group and private teaching pay against total revenue, tracked by type.
- Practice test conversion
How many practice test takers become paying students. Worth tracking separately.
- The set-aside
What you will owe, tracked every month, so April is a number you already knew.
Ask Gus
Things test prep 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 spread it across the weeks the course actually runs, so the sales month and the teaching months both show what really happened.
I keep practice test activity in its own line, so you can look at enrollments that followed it against what the event cost you.
Not for me. I split her pay by the type of work, so group teaching cost and private coaching cost each stay clear.
The tax side
The tax side of a test prep business.
Most of what goes wrong here is counting a cohort's tuition too early and mixing instructor pay types. Fix the timing and 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.
- Deferred cohort revenueTuition paid ahead of a course start date is not fully earned yet, and good books recognize it as the weeks of teaching actually happen rather than the day payment lands.
- Instructor classificationAn instructor who teaches a set course schedule using your curriculum is usually an employee, even if paid per class rather than a salary.
- Contractor 1099sAny instructor or proctor 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 cohort revenue and instructor pay are tracked cleanly all year.
Deductions SAT and ACT test prep businesses miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Venue and classroom rental
- Official practice test materials
- Printed workbooks and answer sheets
- Scheduling software
- Marketing tied to test dates
- Proctor and instructor training
- Liability insurance
- Website and enrollment page
- Business phone line
- 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 test prep year, kept every month.
Your calendar runs on test dates, not seasons. Gus keeps the year's swings organized alongside it. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Spring cohort planning
Enrollment opens for spring test dates. Last year's return gets started 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
Summer intensive check-in
Where you stand as summer intensives replace the school-year schedule, and whether spring enrollment changed what you will owe.
- October
Before the fall test dates
Fall SAT and ACT dates bring the year's biggest enrollment wave. Gus looks at equipment or software worth buying 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 SAT and ACT test prep 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 test prep owners ask first.
Can Gus handle a cohort that starts in one month and ends in another?
Yes. He recognizes tuition across the weeks of instruction rather than the day it was paid, so a course spanning two months shows up honestly in both.
We run both group classes and private tutoring. Does that complicate the books?
No. Group class fees, private coaching, and each type of instructor pay get their own lines from the start, so you can always see what each side of the business earns.
Practice tests bring in students but do not make much on their own. Should I track them separately?
Yes, and Gus does that by default. Keeping practice test activity apart from full enrollment lets you see whether the event pays for itself in new students.
Do I need to send tax forms to instructors paid per class?
Anyone paid $2,000 or more this year who is not on payroll gets a 1099-NEC by January 31. Gus keeps the running list so it is ready when the time comes.
My books are split across three semesters of spreadsheets. Can Gus untangle that?
Yes. Hand over whatever spreadsheets and statements you have from each semester and he pieces it into one consistent history. Most owners see 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