Industry characteristics
- High labour share and frequent staff turnover;
- Delivery is project- or client-based, so revenue recognition needs to match delivery progress;
- Diverse revenue-split arrangements with partners and external collaborators.
Key exposures
- Long-term use of personal cards for business payments, blurring the boundary with personal funds;
- Salaries, service fees and dividends paid interchangeably, with non-standard income-tax and social-insurance treatment;
- Partner profit splits not documented, leaving nothing to rely on in a dispute;
- Revenue recognition out of step with delivery, distorting profit across periods.
How we work
- Review flows between personal cards and the company account and set out a staged consolidation plan;
- Separate the treatment of salary, service fees and dividends, and standardise income-tax filing;
- Help put partner profit-sharing into writing, with clear calculation and settlement terms;
- Establish revenue recognition rules by project or client so profit lands in the right period.