Accounting for Software Companies

accounting for IT companies

The IT (information technology) sector in GTA is booming nowadays. New companies continuously created software developers transferring from employment to independent contracting, and a demand for professional accountants is high as never before.

Some of our clients work in the IT sector. Most of them are independent contractors, software developers who registered their corporation and providing software development services from the name of that corporation, so we are well aware of all aspects of the IT contracting business.

We also serve small and medium-sized IT companies that provide website development, hosting, security, mobile application development, and various other services to their clients. IT business is very familiar to us, and we are confident we can provide quality accounting services to your company as well.

Accounting services for independent IT consultants

An Independent IT consultant is usually a small company owner. The number of transactions is low, and the number of expences not too high, so you can benefit from our least expensive bookkeeping package designed for independent contractors.

At the end of your tax year, along with your tax return, we will prepare a set of financial statements, such as income statement, statement of financial position (balance sheet), cash flow statement, statement of changes in Equity.

Payroll for independent contractors

The majority of our clients prefer dividends plus salary due to the low tax rates for dividends, and for IT consultants who wish to receive a salary, we can calculate PayRun and let you know how much taxes and CPP you need to pay each month. We can also help to open a Payroll account for your corporation and deal with all communication with CRA.

Accounting services for independent IT consultants
Accounting services for IT Companies

Accounting services for Software Companies

In the case of small or medium-sized IT companies, the amount of work is usually much higher, and we usually have to maintain a more massive list of assets. The examples may include either tangible assets, such as software, car, laptops, camera, phone purchases, or intangible assets, such as trademarks and patents.

Besides, IT companies may have employees or subcontractors, and proper salary calculation is essential for that kind of business.

We are familiar with all sides of IT companies' business and successfully provide accounting services to small and medium-sized IT firms.

Accounting and bookkeeping software for IT companies

We are familiar with most of the accounting and bookkeeping software used by IT companies and independent IT contractors. While most of our clients use QuickBooks Online, some use Freshbooks, Wawe Accounting, Sage 50, Zoho Books, Harvest.

If the software you use not on the list, do not worry. We will figure out how to get the data we need pretty fast.

Corporate tax return for Software Companies

At the end of your tax year, we will prepare your corporate tax return with the set of financial statements. If you subscribed to any of our bookkeeping packages, the tax return preparation and filing free of charge. You can learn more about our fees there.

HST calculation

We will calculate your quarterly or yearly HST payments and help with any tax-related questions.

GST/HST Quick Method of Accounting for IT companies

You may consider switching to a Quick tax method to minimize your HST tax payments because IT companies do not have a large number of expenses from which they can claim an input tax credit (ITC). However, with Quick Method, they will still get an ITC on their purchases of capital assets. The Method is designed for a small corporation and usually fits most of our independent contractors. Let us know if you want to discuss this. We will assess your company and let you know if you qualified and what the savings are.

Corporate tax return for IT Companies

Have a question about IT-related accounting services?

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About Taxory

Taxory is a small business accounting firm providing services in Mississauga and GTA. Our accounting services are available in English and Russian.

Our Contacts

1795 Hyde Mill Cres
Mississauga, ON L5N 0A7