How is bookkeeping for IT different than regular bookkeeping?
Most IT companies have a mix of project work and long-term, regular work. Your business will have substantial software costs, and multiple resource costs with a requirement to track multiple projects with the right mark-ups. You may also have many billable expenses to record for customers. Xero has the facility to easily manage expenses that need to be invoiced to customers.
Xero also has inbuilt category tracking and an add-on module called Projects, which can quote, invoice and track time against specific jobs. This allows you to track all expenses and income associated with a project and report on profitability. For more complex project management, Xero integrates with many add-on apps like ConnectWise.
Your accounting software is the source of financial truth. Your IT project management software needs to be fully integrated with your accounting software to accurately manage customer payments and financial reporting. We provide accounting and technological expertise combined – so much more than simple data entry. You need a team that can provide specialist bookkeeping support for IT companies.
On The Money Bookkeeping has the knowledge and skills required for IT bookkeeping and is experienced in working with various IT clients around Australia.
How can we help?
One of our key aims as a specialist bookkeeper for IT companies is to ensure your business’s profitability. We can help in many ways, including setting up Xero and integrating it with your existing IT management software or tools. We try to keep things as easy as possible for you so that you can focus on your projects and customers. We’ll keep your accounts up to date for statutory compliance obligations, cash flow advice and accurate financial reporting. We can also get involved in reviewing and analysing project costs and make recommendations for improvements, empowering you to make informed choices.
Bookkeeping and BAS services:
- Reconciling your bank accounts
- Managing supplier invoices and payment
- Managing customer invoices and receipts
- Timesheet and payroll management
- HR advice with our partners Workforce Guardian and Employment Hero
- Preparing financial statements
- Cash flow management, including budgeting for quarterly and annual obligations Lodgement of activity statements, Single Touch Payroll, payroll tax returns, workers’ compensation annual declaration
Why choose us?
On The Money Bookkeeping is a team of exceptional Xero-certified bookkeepers and accountants. Xero is the most advanced cloud-based bookkeeping solution available today, and we know you will love it as much as we do.
Going above and beyond bookkeeping basics, we are known for offering proactive support in making your business more profitable and efficient.
Connect with us for a no-obligation review of your existing bookkeeping system.
FAQs
Why do IT companies need specialised bookkeeping?
IT companies often combine project work, managed services, recurring subscriptions, software licences, contractors and billable customer expenses. These different revenue and cost streams need to be recorded consistently if the business wants to understand project and service profitability.
Specialised bookkeeping for IT also considers software integrations, overseas suppliers, deferred or recurring income, project tracking and the relationship between operational systems and the accounting file.
What does bookkeeping for IT businesses include?
It may include bank reconciliation, invoicing, subscription income, supplier bills, software costs, payroll, contractor payments, customer expenses, BAS, cash flow and management reporting.
For project-based firms, bookkeeping can also include time tracking, project cost allocation and profitability reporting. The service should be designed around the way the IT business earns revenue and manages client work.
What is the best bookkeeping software for IT service providers?
The best platform is one that produces accurate accounts and connects effectively with the systems the business already uses. On The Money Bookkeeping is a 100% Xero practice because Xero provides strong cloud accounting, reporting, payroll and integration capabilities.
For project tracking, businesses may use more specialised industry-specific add-ons. The important part is making sure information moves correctly between platforms and that one reliable financial record is maintained.
How can bookkeeping help IT companies manage project costs?
Project coding allows income, staff time, contractor charges, licences and other direct costs to be allocated to the correct job. This helps show whether the project is performing in line with its quote or budget.
Without accurate project records, a business can appear profitable overall while individual jobs are losing money. Regular reporting gives management time to review pricing, resource allocation and scope changes before the project is finished.
How can bookkeeping help IT companies during tax time?
Current, reconciled accounts mean the tax agent receives organised records rather than a file that needs extensive correction. Expenses, assets, payroll, GST and income are easier to review when they have been recorded correctly throughout the year.
Bookkeeping also allows the business to monitor likely liabilities and speak with the tax agent before year-end. That makes planning more useful and reduces the risk of unexpected issues when returns are prepared.
How can IT companies automate their bookkeeping processes?
Automation may include bank feeds, recurring invoices, payment reminders, receipt capture, supplier bill processing, payroll integrations and connections between project-management and accounting software.
Automation works best when the underlying workflow is properly designed. Simply connecting more apps does not guarantee accurate data. We review how information enters the accounts, where approvals happen and which steps can be automated without weakening financial controls.
What’s the cost of bookkeeping for small IT firms?
The cost depends on transaction volume, number of employees or contractors, project-tracking needs, software integrations, BAS and payroll frequency and the level of reporting required.
A small managed-services provider may have recurring transactions but complex integrations, while a project consultancy may need detailed time and job reporting. Reviewing the existing system helps determine what is necessary and what can be streamlined.
How often should bookkeeping be done for an IT business?
Weekly bookkeeping at a minimum is usually more useful than leaving the accounts until the end of the month or quarter. IT businesses often need current information on project margins, recurring revenue, debtor balances and contractor costs.
Frequent updates also make automated systems easier to monitor. Integration errors can then be identified before they affect several months of reports or customer invoices.