Bookkeeping and Accounting for It Consultants

As an IT consultant, there are several tax deductions and credits you should be aware of:

• Home Office Deduction: If a part of your home is used exclusively for your work, you may be able to deduct a portion of your housing expenses.
• Equipment and Software: The cost of computers, software, and other necessary IT equipment may be deductible.
• Professional Development: The costs of certification courses, further education, or any professional development can often be deducted.
• Travel Expenses: If your work requires travel, you may be able to deduct these costs, including airfare, accommodation, and meals. This can also include travel to conventions, expos, or training seminars related to your field of work.
• Health Insurance: If you're self-employed, you may be able to deduct premiums that you pay for health, dental and qualifying long-term care insurance coverage for yourself, your spouse and dependents.

It's important to note that tax laws change frequently, and what you can deduct can vary depending on your location and unique situation. Therefore, it's always a good idea to engage with a professional bookkeeper who's familiar with IT consulting work to navigate the specifics.

The best kind of bookkeeping system for tracking and itemizing your IT-related expenses would probably be a cloud-based system with features specifically designed for managing IT finances. Such a system allows for real-time tracking of expenses, easy categorization and itemization of IT costs, and accessibility from any device. Bench’s own online bookkeeping service is a solid choice for this purpose. All these offer custom expense categories and tracking, and they're designed to make financial management as easy and efficient as possible for businesses in all industries, including Information Technology.

Managing financial records for contracts, project-based work, and recurring IT consulting services can be complex. The most efficient way to handle this is by implementing an Integrated Accounting System. This system keeps track of all your financial transactions, invoices, and payments. You can also use it to track time and expenses for each project or contract.

You should also consider hiring a bookkeeper or an accounting firm to ensure that your finances are properly managed. They can help to keep your records organized, up-to-date, and in compliance with tax laws. Furthermore, they can provide valuable financial insights that can help you make informed business decisions.

Bench Accounting provides comprehensive bookkeeping services tailored to your business needs. We have a team of expert bookkeepers who can manage your contracts, project-based work, and recurring IT consulting services, ensuring that your financial records are always accurate and organized.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.