IT & tech services

Books and taxes for app development agencies.

A client billed by the sprint, a small cut of app store revenue on a shared-risk build, a freelance designer paid per screen, and a support contract that starts once the app ships. Your own bookkeeper sorts it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
SeptemberExample month
$14,200
what you made

September came in at $14,200. The revenue share from the Fenwick fitness app finally posted from the app store, so I booked it as its own category apart from your sprint billing clients.

  • Sprint billing, 2 clientsSprint billing
  • App store revenue shareRevenue share income
  • Freelance designer, per screenContract design pay
  • Apple developer program feeStore and distribution fees
  • App team payrollWages
Money in$52,000
Money out$37,800
Set aside for taxes$3,300
An example month. Yours will have your numbers.

Why your books are different

App agency books go wrong at the sprint and the revenue share.

A generalist sees an invoice and a bill. Your business runs on work billed by the sprint, occasional deals where you take a cut of app store earnings instead of a flat fee, and freelance designers paid per screen. When the books blend those, you cannot tell which pricing model is actually carrying the agency.

  1. 1

    App store revenue share arrives late and unpredictable

    A shared-risk deal where you take a percentage of a client's app store earnings instead of a flat fee can post to your account weeks after the sales happened, and if it is not tracked apart from sprint billing, a lucky month looks like ordinary client work grew.

    What we doKeeps app store revenue share in its own line, apart from sprint billing, so you can see which pricing model is actually paying off.
  2. 2

    Sprint billing does not match the work completed

    A client billed for a two-week sprint that runs long or short can create a gap between what was invoiced and what was actually delivered, and without tracking that gap, a sprint that ran over can quietly eat into margin.

    What we doTracks sprint billing against time actually spent, so a sprint running long shows up before it erodes the project's margin.
  3. 3

    A freelance designer paid per screen looks like a flat contractor bill

    Paying a freelance designer per screen or per deliverable rather than a flat monthly rate makes it harder to see the real design cost of a project unless those payments are tracked against the project they served.

    What we doTies freelance design pay to the project it supported and tracks the running total toward the 1099 threshold.
  4. 4

    Store fees and distribution costs blend into ordinary software spend

    Developer program fees, in-app purchase processing cuts, and app store commissions are real costs of doing business through those app stores, and lumped in with general software spend, you lose sight of what selling through the stores actually costs.

    What we doKeeps app store and distribution fees in their own line, separate from the software tools that run your own shop.
  5. 5

    A post-launch support contract looks like new project income

    Once an app ships, a smaller ongoing maintenance and bug-fix contract can start renewing every month, and if it is not tracked as its own recurring income, it gets lost inside new sprint billing for other clients.

    What we doTracks post-launch support as its own recurring income, so the steady base is visible against new project work.

Your categories

The categories Gus keeps for an app development agency.

Set up once for how you get paid and what you spend. You never pick a category. He does, and an accountant checks it.

Money in

  • Sprint billingWork billed in two-week or monthly development sprints.
  • Revenue share incomeA cut of a client's app store earnings on shared-risk builds.
  • Post-launch supportOngoing maintenance and bug-fix contracts after an app ships.
  • Design and prototyping feesStandalone design work before a build begins.

Money out

  • WagesPay for developers and designers on staff.
  • Contract design payFreelance designers paid per screen or per project.
  • Store and distribution feesDeveloper program fees and app store commissions.
  • Development tools and licensesSoftware used to build and test client apps.
  • Business insuranceGeneral liability and technology errors-and-omissions coverage.

What we watch for you

  • Sprint margin

    Sprint billing against time actually spent, so a sprint running long shows up before it erodes profit.

  • Revenue share income

    How much comes from app store cuts versus flat billing, since it arrives on its own schedule.

  • Support contract floor

    Post-launch support income against total income, the steady base behind new project work.

  • The set-aside

    The set-aside tracks sprint billing and revenue share together, so April reflects the full picture, not just one pricing model.

Ask Gus

Things app development agency owners ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

A client's app store revenue share finally posted, months after we shipped the app. How does that get counted?

I booked it as its own revenue share category, apart from sprint billing, so it does not look like your regular client work suddenly jumped.

One sprint ran two weeks longer than we billed for. Does that show up anywhere?

Yes, I track sprint billing against time spent, so a sprint running long shows up before it quietly eats into the project's margin.

I paid a freelance designer $3,200 across a few projects this year, per screen. Does she need a 1099?

Yes, since it crossed $2,000 and she is not on payroll. I have been tracking the total across her projects, so the form is ready by January 31.

The tax side

The tax side of an app development agency.

Most of what goes wrong here is timing and tracking: revenue share that lands late, and design costs that need to be tied to a project rather than lumped as one flat contractor bill.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Contractor 1099sAny freelance designer or developer not on payroll paid $2,000 or more in 2026 gets a 1099-NEC by January 31. Gus keeps the running total across their projects.
  • Software development cost treatmentCosts to build an app, whether for a client or for your own shared-risk product, may need to be spread out over several years rather than deducted right away depending on the work. This is a call for the accountant.
  • The pass-through deductionMost owners can take up to 20 percent of business profit off their taxable income when sprint, revenue share, and contractor costs are tracked apart all year.
  • Equipment write-offsDeveloper workstations and testing devices bought for the business can usually be written off the year they are bought.

Deductions app development agencies miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Apple and Google developer program fees
  • Contract design and prototyping pay
  • Development software licenses
  • Testing devices and hardware
  • Business insurance
  • Technology errors-and-omissions coverage
  • Cloud hosting for client apps
  • Code repository and project tools
  • Office rent and utilities
  • Continuing education courses
  • Conference and networking travel
  • Business phone and internet

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

An app agency year, kept every month.

Sprints and store payouts run on their own timelines. Your team stays on the books every month, not just at tax time. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Sprint zero for the books

    Last year's return gets started, the design contractor 1099 list is finalized, and a monthly set-aside is planned around sprint and revenue share income.

  2. April

    Shipped and filed

    Your return is filed and signed, with sprint income and revenue share already sorted apart.

  3. July

    Halfway through the year

    Where you stand, what you will owe, and whether post-launch support contracts are building a steady base.

  4. October

    Before the next release

    Gus looks at tools or equipment worth buying before December and flags any sprints running long against what was billed.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for app development agencies. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions app development agency owners ask first.

A revenue share deal paid out months after launch. How does Gus handle the delay?

It gets booked as its own revenue share income when it arrives, kept apart from sprint billing, so it does not distort what your ongoing client work actually earned.

Some clients pay flat sprint rates and others are a cut of app store earnings. Can Gus keep those separate?

Yes. Sprint billing and revenue share income get their own lines, so you can see which pricing model is actually working.

I pay freelance designers per screen instead of a flat rate. Does that complicate the books?

No, Gus ties their pay to the project they worked on and tracks the running total toward the 1099 threshold, no matter how many small payments it took.

Does Gus track app store commissions as their own cost?

Yes. Developer program fees and store commissions get their own line, separate from the software tools that run your own shop.

My books are behind because sprint billing and revenue share were never separated. Can Gus fix that?

Yes. Send what you have. Gus sorts sprint income from revenue share, the accountant checks it, and most owners know where they stand within a week.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever