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.
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 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.
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.