How to Record Consultant Service Costs
Recording professional and consultant service costs in compliance with FAR 31.205-33.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Professional Services - Allowable | Debit | 12,000.00 | - |
| Accrued Liabilities | Credit | - | 12,000.00 |
💡 Accountant's Note
Consultant costs are allowable only if supported by evidence of the nature and scope of the service and the work product delivered.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific sub-ledger for FAR-compliant professional services to track work products.
⚠️ Audit Flags
Vague descriptions such as 'professional services' without specific deliverables are frequent audit targets.
📄 Required Documentation
Consultant agreement, detailed monthly invoices, and work product (e.g., reports, memos).
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Expert Analysis by Qusai Ahmad
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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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Discussion & Community Questions
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