Bookkeeping and Accounting for Private Investigators

As a private investigator, there are several expenses you can deduct from your taxes. These can range from operational to administrative costs. Some examples include:

• Vehicle expenses used for investigative work
• Travel expenses, meals, and entertainment related to your business
• Office expenses such as rent, utilities, insurance, and maintenance
• Tools and equipment necessary for your work such as cameras, recorders, computers, and software
• Training and education expenses that maintain or improve your skills

To properly document these expenses, it is important to keep detailed records. Receipts, invoices, vehicle mileage logs, and other proofs of purchase should be kept and organized. It could be beneficial to engage a bookkeeper or use an expense tracking software to simplify the documentation process.

Remember, every individual and business situation is unique. We recommend consulting with a professional tax consultant or CPA to get advice tailored to your specific circumstances.

For a private investigation business, it's important to follow generally accepted accounting principles (GAAP) to manage and effectively monitor your income. Here are some key practices:

• Accurate Record Keeping: Keep track of all business-related expenses and income accurately. This includes maintaining all receipts, invoices, and bank statements so you can reconcile your accounts regularly.
• Separate Personal and Business Finances: Always keep your personal and business bank accounts separate. It makes tracking business income and expenses easier, and prevents any legal issues down the line.
• Quarterly Tax Estimations: As a private investigator, you are considered self-employed. Therefore, you should pay estimated tax quarterly to avoid large year-end tax bills.
• Use Accounting Software: Consider using accounting software tailored for small businesses. It can help simplify your bookkeeping and provide a clear picture of your finances at any time.
• Retain a Professional: While managing your business, you may not have time to handle all your accounting needs. Hiring a professional bookkeeper can help ensure your books are in order and free up more time for you to focus on operations.

Following these practices can help ensure your private investigation business income is accurately managed and monitored. Remember, Bench Accounting is here to help with all your bookkeeping needs!

Bench Accounting can significantly help private investigators in managing tax-related issues. Our dedicated team of skilled and experienced bookkeepers ensures proper organisation and classification of all your expenses and revenue. With accurate financial records, tax calculation becomes easier and more precise.

Moreover, we also provide tax filing services, which include identifying and applying relevant deductions to minimise your tax liability. This not only keeps your business compliant but also saves you money. With Bench Accounting handling your tax-related issues, you can focus your energy and time on your primary services as a private investigator.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.