IT SERVICE PROVIDER CPA SERVICES

Accounting, Tax & CFO Services for IT Service Providers

From recurring-revenue recognition to R&D credits, we handle the numbers so you can focus on scaling your technology business.

Serving Seattle-area IT companies and MSPs since 1971 · Licensed WA CPAs

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Accounting Built Around How IT Service Providers Operate

Greenwood Ohlund provides accounting for IT companies across the Seattle area: managed service providers, SaaS companies, IT consultancies, and software developers. We handle recurring-revenue accounting, R&D credits, multi-state sales tax, and CFO-level reporting together, so the numbers behind your growth are always current.

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OUR CLIENTS

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The Challenges IT Service Providers Face and How We Help

We set up deferred revenue schedules that release contract value across the term, and allocate bundled agreements across hardware, licenses, and managed services under ASC 606. Your monthly revenue reflects the month, not the billing cycle.

Software development often qualifies for the §41 credit, but it’s easy to under-document. We identify qualifying activity, document it deliberately to survive review, and coordinate it with how your development costs are deducted.

If you operate in Washington, yes. SaaS is taxable here, and economic nexus in other states means remote customers can create filing obligations you don’t know about. We determine where you’ve crossed thresholds and handle the registrations and filings.

We separate project work from recurring services in your reporting, so you see which contracts carry their own cost and which ones are subsidized by the rest of the book.

WHAT WE DO

How We Support IT Service Providers

Tax Services

R&D credits, software development cost treatment, multi-state filing, and entity choice as you raise or grow.

Audit & Assurance

Investor- and lender-ready financials that hold up in diligence.

Accounting & CFO Services

Deferred revenue, SaaS and MSP metrics, and a fractional CFO who reads your numbers by contract type.

What Makes Accounting for IT Companies Different

Revenue recognition is the center of it all. Under ASC 606, a subscription or managed-services contract is recognized across the period you deliver it, not when you invoice, and a bundled agreement has to be allocated across its separate pieces first. Get that wrong and your revenue, your deferred balance, and every metric built on them are all off at once.

The tax side has its own structure. Domestic research and development costs are deductible in the year incurred under §174A, while research conducted abroad is still capitalized and amortized over 15 years, so where your developers sit changes your deduction. The §41 research credit interacts with that deduction, and the two have to be coordinated rather than claimed separately. For venture-track companies, entity choice determines whether your shareholders can qualify for §1202 treatment on an exit, and that decision is made years before it pays.

Washington adds a state layer. SaaS and remote access software are subject to retail sales tax here, and B&O tax applies to your gross receipts on top of it. Economic nexus in other states can create sales tax obligations from nothing more than a remote customer base, which means your filing footprint grows with your customer list rather than your office locations.

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We serve firms like yours

Firms Like Yours

We work with a wide range of IT service providers, including:

nonprofit accounting services
nonprofit accounting services

Managed service providers (MSPs)

nonprofit accounting services
nonprofit accounting services

SaaS companies

nonprofit accounting services
nonprofit accounting services

IT consulting firms

nonprofit accounting services
nonprofit accounting services

Software developers

nonprofit accounting services
nonprofit accounting services

Cybersecurity firms

nonprofit accounting services
nonprofit accounting services

Cloud and infrastructure providers

Why IT Service Providers Choose Greenwood Ohlund

Decades serving professional service firms

We’ve been doing this since 1971.

Tax, audit, accounting, and CFO expertise, one firm

Most firms our size don’t offer all four under one roof. You get a tax team, an audit team, and a CFO-level advisory team who already talk to each other, instead of coordinating three separate vendors yourself.

Seattle-rooted, with clients across Washington and beyond

We’re based in Seattle and built around the Pacific Northwest, with clients in other states when the relationship calls for it.

A relationship that runs all year, not just tax season

We’re recognized as a Peak Firm and a PSBJ Washington’s Best Workplaces honoree, and that same culture shows up in how we work with clients: regular conversations and actual availability, not a firm you hear from once a year.

EXPERIENCE THE GO DIFFERENCE

Your IT Service Providers Team

Claire Chow

TAX SERVICES

Claire Chow, CPA

Partner

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Matt Smith

AUDIT & ASSURANCE

Matt Smith, CPA

Partner

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Jason Mallon, CPA

CFO & ACCOUNTING SERVICES

Jason Mallon, CPA

Partner

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MEET THE TEAM
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 GO has proudly partnered with UCDS since 2022 to support the school’s financial stewardship and long-term sustainability. Over time, that partnership has evolved alongside the school’s growth and continued focus on innovative education, strong governance, and mission-driven planning. In what ways does the GO

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FAQ

IT Service Providers Accounting FAQs

Subscription and managed-services revenue is recognized as you deliver the service, not when you bill it. An annual contract paid upfront sits in deferred revenue and releases monthly across the term. We build the schedules so your reported revenue matches the period it belongs to.

Deferred revenue is contract value you’ve collected but haven’t earned yet. For an MSP billing annually or quarterly, it’s most of what hits the bank in a given month. It’s a liability until the service is delivered, and tracking it is what keeps your revenue from looking lumpy.

Often, yes. Software development, new feature work, and technical problem-solving can qualify for the §41 credit, and the documentation requirement is what usually decides it. We identify qualifying activity during the year rather than reconstructing it at filing.

Domestic research and development costs are deductible in the year incurred under §174A. Research conducted outside the US is capitalized and amortized over 15 years. Where your development team is located changes the answer, which matters for companies using offshore contractors.

In Washington, SaaS is taxable. Other states vary, and economic nexus means a remote customer base can create obligations in states you’ve never set foot in. We determine where you’ve crossed thresholds and handle MSP accounting services and filings for Seattle tech companies selling across state lines.

It depends on your revenue model, the number of states you sell into, and whether you need monthly reporting or annual compliance. We start with a conversation about your business, then build a proposal around it.

CONTACT US

Let’s Strengthen the Financial Side of Your Tech Business

Recurring-revenue recognition, R&D credits, or multi-state sales tax on SaaS: we can take it from here. Reach out and we’ll start with a conversation about your business.