Today, many excellent programmers and other IT professionals become business owners and entrepreneurs, deciding to open a business in the IT field.

The IT industry has been developing rapidly in recent years, having a good export orientation, and the number of IT specialists and IT companies looking for accounting consultants is constantly growing.

Due to purely technical “parameters” (infrastructure setup, consulting, outsourcing, recruitment issues, rental of premises, financial and many other points), the future and novice owner should pay attention to the fact that it is a must to take help from accounting consultants to deal with complex financial matters present in a business.

For the IT sector, there are peculiarities of documenting the financial and economic activities of an enterprise, and if they are not considered, it will be difficult or even impossible to establish an optimal and risk-free state of affairs without financial and reputational losses.

• As a rule, the owners of IT companies make the following mistakes when organizing and maintaining accounting:
• Registration of the provision of services instead of the transfer of intellectual property rights, or copyrights;
• Payment and taxation of remuneration to independent contractors or staff salaries instead of taxation of royalties;
• Incorrect accounting of intangible assets and expenses for the production of IT-company products;
• Mixing instead of distinguishing between accounting and taxation of income from the sale of IT services and income from the sale of software products, since this is not the same thing, etc.

In this interdisciplinary issue, accounting consultants can provide comprehensive services. When setting up a business belonging to the IT industry or when working in this industry for years, you should not rely only on your strengths, but also on accounting consultants.

Choosing an accounting consultant for an IT company: A full-time specialist or outsourcing?

What do IT and accounting have in common? At first glance, it seems like nothing. But still, there is one feature – dynamic development.

The IT sphere is practically at the stage of its formation, and accounting, even at ordinary enterprises, is forced to adapt to constant changes in the legislative framework. And all these features must be taken into account by the accountant.

The situation becomes more complicated in the absence of experienced specialists who could provide professional accounting consulting for IT companies. And, given the nature of the activity, finding them is not so easy.

In addition, accounting for legal entities differs. There are two options for solving this problem:

• Maintain a specialist in the staff of your IT company (providing services remotely or in the office) or
• Contact the best accounting consultants.

Choosing the first options forces business owners to provide the full-time accountant a workplace with the necessary equipment.

While on the other hand, outsourcing this task provides a lot of benefits and the best part is that today, the availability of technical means allows accounting consultants to keep accounting efficiently and quickly, even without being present in the office.

The question of what will be cheaper – the services of an in-house specialist or outsourcing – remains open. It all depends on the scope of work, the qualifications of employees, the rating of the outsourcing company, etc.

Be it a legal entity with a significant scale of the activity or a small firm, it is always preferable to have accounting consultants for accounting support in the company and is perhaps a more rational solution.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.