Business Consulting can be challenging enough, but throw Democrats and Republicans into the mix; you really have your hands full! Washington, DC is a unique area. Many former government employees leave government service and join the private sector as consultants. In addition, there are many professionals that are involved directly in the political arena, assisting candidates with their campaigns. This assistance can take many forms. Some of the consultants help with analysis of voter demographics, design political ads, write speeches, administer phone banks, etc. Regardless of which party, the accounting and tax challenges are the same.
The consulting business can be difficult enough, but political consultants have a unique cash flow challenge. Due to the election cycles, most political consultants have a two-year business cycle- commonly referred to as Feast and Famine! In the year of an election, the political consultants generally are very busy and earn significant income. Sadly, this is followed by an “off year,” which is generally very challenging, producing considerably lower income. The goal is to ensure that the appropriate planning is done to ensure that the business can survive the “off year.”
And while business consultants who are not involved in the political arena are preserved from some of the ups-and-downs which are part of that life-cycle, they still encounter many of the same business and tax challenges. Licensing, payroll, choice-of-entity, what expenses can you take? These are just some of the issues you’ll run into as a Consultant, political or otherwise.
Having worked with many business and political consulting clients since the Carter administration, BSB is uniquely qualified to assist our consultant clients with their accounting and tax challenges. Regardless of the type of consulting or party affiliation, we are here to ensure that you meet your financial and tax challenges. And who knows, there may even be a special election in the off year to spice things up!