(720) 333-7274 Mon–Thu 8–4, Fri 8–12 MT · Castle Rock, CO
IT / Managed Service specialty

IT and MSP accounting.

Monthly recurring revenue (MRR) tracking, hardware pass-through accounting, RMM and security stack expenses, and the buy-vs-resell math on every client engagement.

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Managed services live on monthly recurring revenue. The accounting needs to make MRR visible (it is the asset value of the firm), separate hardware pass-through from labor revenue, and track the substantial software stack that runs an MSP — RMM, PSA, security, backup, monitoring, all of which add up to 12–20% of revenue.

We work with solo IT consultants, small MSPs, and combined MSP + project shops.

What we handle

  • MRR tracking as a primary KPI.
  • Hardware pass-through separated from agency revenue.
  • Software stack categorization — RMM, PSA, security, backup, monitoring.
  • Tech payroll with proper W-2 setup.
  • Project revenue separated from MRR for valuation purposes.
Field note: MRR vs project mix

An MSP with $1.2M in revenue thought they were heavily MRR-based. After separation, MRR was $480K and projects were $720K. Buyers value MRR at 4–6x and project revenue at 0.5–1x. The cleanup mattered for transition planning.

If / Then

If you sell hardware, pass-through accounting is required.
If MRR matters for sale or financing, separate it cleanly.
If stack expenses exceed $1K/mo, monthly review surfaces savings.

The Bottom Line

Real MRR, clean pass-through, software stack under control.

From $500/month.

Frequently asked questions

PSA software?

ConnectWise, Autotask, HaloPSA — sync to QuickBooks.

Hardware accounting?

Pass-through cost line and pass-through revenue line, with markup as the actual margin.

Buy or resell?

We help you model client-by-client whether reselling makes sense vs pure agency.

S-corp?

At $100K+ net, almost always.

Reviewed by

Kali Gilliland · Founder & Lead Accountant

Kali Gilliland is the founder of TBA & Associates and has spent more than a decade serving small businesses across the Denver metro and Colorado Springs corridor. She handles everything from monthly bookkeeping to multi-state tax planning, with a long-term client roster that goes back 10+ years.

Ready for an accountant who picks up the phone?

Get a quote in under 24 hours. No long contracts, no jargon — just clean books and honest tax planning from a Denver-area firm trusted by small businesses for more than a decade.