Revenue earned from consulting services is generally classified as income from professional services on a balance sheet. The income statement of a consulting firm begins with consulting revenues. This is the income obtained from the company's main activity, consulting. Generally accepted accounting principles state that income cannot be accounted for unless there is convincing evidence of an agreement, the services have been provided, the price is fixed or determinable, and the capacity to collect is reasonably determined.
insured. It's important to note that, under these rules, other payments received, such as insurance income or future payments, are not considered income. Care must be taken to determine that recorded income complies with generally accepted accounting principles. Finally, consulting revenues minus service costs provide us with gross margin, the first subtotal of the consulting income statement.