Web Hosting Accounting

[robert4u]

Hello,

How accounting works in web hosting?

I mean when you get new client, you put details do I have to months etc or just record the amount?

How do you people record accounting for web hosting business?

 

[ioZoom]

You record every payment along with fees in an accounting software such as Quickbooks. There are Quickbooks whmcs modules (if you use whmcs) that will automate this for you. Take a look at myworks quickbook sync, www.myworks.design

Of course you will need a quickbook account to use this. Otherwise, you can just send your sales total along with fees and expenses to your accountant every month.

 

[bigredseo]

Depending on how you have your accounting setup, you can operate on a Cash Basis or Credit Basis. Check with your accountant for the benefits of each.

Essentially, on a Cash basis, you pay taxes on the income received, however on the Credit basis, you can also write-off cancellations/terminations as lost revenue.

There are a few loopholes but check with your accountant regarding the best for your particular style of business operation.

 

[robert4u]

Ok how to manage credits that we prepay to domain accounts etc?

 

[bigredseo]

The credits, depending on your accounting methods, could be used as a tax writeoff since it's technically marketing, and technically a gift, and technically lost revenue. There's a number of ways of writing it off, but as always, your accountant will know the correct method for your state/city/location.

Also, your accountant will likely have a prefered accounting software that they'll suggest to you. While Quicken is great from home users, most accountants hate it and would recommend QuickBooks or other software. But again, if you're going with a simple accounting method, you could ignore all software and all tracking, and strictly pay your taxes based on the income deposited to your bank account.

When you prepay to domain places (enom etc), that could be considered as an asset, a float account, or separated into a separate credit account entirely. It'll fall under vendor too, so it could be considered as a payment to a vendor.

Again, depending on your accountant's methods, using it as a vendor account could be written off as a COGS. It can be considered as either a Debt, or a Credit, but it depends on how you're going to be tracking things.

Have you spoken to an accountant yet?

 

[zomex]

You record every payment along with fees in an accounting software such as Quickbooks. There are Quickbooks whmcs modules (if you use whmcs) that will automate this for you. Take a look at myworks quickbook sync, www.myworks.design

Of course you will need a quickbook account to use this. Otherwise, you can just send your sales total along with fees and expenses to your accountant every month.

I will also recommend MyWorks Design. Although I don't use this module I've worked with Peter and the team many times. They are a very reliable company.