IT & tech services

Books and taxes for managed service providers.

Per-seat contracts renewing monthly, break-fix tickets billed by the hour, a server resold at a markup, and distributor invoices due on their own schedule. 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
JanuaryExample month
$15,100
what you made

January came in at $15,100. Three clients renewed their per-seat contracts a few days early, so I held that extra cash apart from February's number instead of letting it look like growth that will not repeat.

  • ConnectWise contract billingManaged contracts
  • Break-fix ticket, Harmon DentalBreak-fix tickets
  • Ingram Micro invoiceHardware and parts
  • Pax8 license renewalSoftware and licensing
  • Tech payroll runWages
Money in$58,200
Money out$43,100
Set aside for taxes$2,700
An example month. Yours will have your numbers.

Why your books are different

MSP books go wrong at the contract, the hardware markup, and the ticket.

A generalist sees a deposit and a bill. Your business runs on renewing per-seat contracts, break-fix tickets billed by the hour, and hardware you buy at distributor cost and resell at a markup. When the books blend those three, you cannot tell which clients actually pay for the support they use.

  1. 1

    Hardware markup gets lost inside the invoice

    A client invoice that bundles a resold server, the install labor, and this month's support fee gets deposited as one number, so you never see what the hardware markup itself actually earned versus what the labor cost you to deliver.

    What we doSplits hardware resale from labor and support fees on every invoice, so the markup shows up as its own number.
  2. 2

    A renewing contract looks like a fresh sale every month

    If each month's per-seat billing is entered as a new invoice instead of tracked as the same recurring contract, a client who cancels does not show up as a drop, it just quietly stops appearing.

    What we doTracks each contract as recurring income so a cancellation shows up immediately as a change, not a mystery three months later.
  3. 3

    A second tech looks like a plain payroll expense

    Bringing on a subcontracted tech for a big migration project and paying them the same way as staff hides whether that project actually made money after their pay came out.

    What we doKeeps contractor pay in its own line and tracks it toward the 1099 threshold, separate from regular payroll.
  4. 4

    A distributor order wrecks the monthly number

    A single Ingram Micro order for a client's server refresh can run into tens of thousands of dollars, and booked like an ordinary expense it makes one month look like a loss and the next look unusually strong.

    What we doFlags large distributor orders the day they land and ties them to the client project they belong to, so one month does not look broken.
  5. 5

    Software licensed for a client gets mixed with the business's own tools

    Licenses bought through a distributor to resell to a client and the remote monitoring software you use to run your own shop both show up as software costs, so you cannot tell which spend is billable and which is overhead.

    What we doKeeps client-billable licensing apart from the software that runs your own shop, so overhead is never overstated.

Your categories

The categories Gus keeps for a managed service provider.

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

  • Managed contractsRecurring per-seat or per-device billing, tracked as ongoing income.
  • Break-fix ticketsOne-off support calls billed by the hour or by the visit.
  • Hardware resaleThe markup on servers, laptops, and networking gear you resell.
  • Onboarding feesOne-time setup charges when a new client comes on board.
  • Project workMigrations, refreshes, and builds billed outside the monthly contract.

Money out

  • Hardware and partsDistributor invoices from Ingram Micro, D&H, and similar suppliers.
  • Software and licensingPax8 and other distributor billing for tools resold to clients.
  • Remote monitoring toolsConnectWise, NinjaOne, or similar software used to run your own shop.
  • WagesPay for techs on staff, kept apart from contractor pay.
  • Contractor paySubcontracted techs brought in for overflow or big projects.
  • Vehicle costsFuel, insurance, and repairs for techs who drive to client sites.
  • Business insuranceGeneral liability and errors-and-omissions coverage.

What we watch for you

  • Recurring contract floor

    Per-seat and per-device income against total income, the base that holds even in a quiet month.

  • Hardware margin

    What is left after distributor cost on resold gear, separate from labor and support fees.

  • Contractor spend

    What subcontracted techs are paid, tracked toward the 1099 threshold.

  • The set-aside

    What you will owe, tracked every month, so April is a number you already knew.

Ask Gus

Things managed service provider 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.

I bought a whole server refresh for a client through Ingram Micro. Why does this month look terrible?

That order alone was most of your spend this month. I tied it to the client project so it does not read as a bad month, it reads as one big job.

Two clients bundled hardware and support into one invoice. Can you tell what the markup actually was?

Yes. I split the hardware cost from the support fee on both invoices, so you can see the markup as its own number.

I brought in another tech for a migration. Do I owe him a 1099?

If he is not on payroll and you pay him $2,000 or more this year, yes, by January 31. I am keeping the running total as we go.

The tax side

The tax side of a managed service provider.

Most of what goes wrong here is timing and labels: a distributor order filed like a normal expense, a contractor paid like an employee, and a set-aside nobody started until April.

What your return has to get right

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

  • Equipment write-offsServers, workstations, and networking gear bought for your own shop can usually be written off the year you buy them. Bonus depreciation is 100 percent for property acquired after January 19, 2025.
  • Contractor 1099sAny subcontracted tech not on payroll paid $2,000 or more in 2026 gets a 1099-NEC by January 31. Gus keeps the running list all year.
  • Employee or contractorA tech who works set hours, uses your tools, and takes direction like staff is usually an employee, even if paid like a contractor. Getting that wrong gets expensive.
  • The pass-through deductionMost owners can take up to 20 percent of business profit off their taxable income. It comes out right when hardware, labor, and contract income are tracked apart all year.

Deductions managed service providers miss

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

  • Loaner and demo laptops
  • Remote monitoring software
  • Endpoint security licenses
  • Technician vehicle mileage
  • Errors-and-omissions insurance
  • Certification renewal fees
  • Diagnostic and repair tools
  • Shop rent and utilities
  • Business phone plans
  • Trade show travel
  • Backup and recovery drives
  • Contractor and referral payments

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 MSP year, kept every month.

Contracts renew on their own schedule and clients rebid support at their fiscal year start. 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

    New contracts, new year

    Last year's return gets started, the subcontracted tech 1099 list is finalized, and a monthly set-aside is planned around this year's contract renewals.

  2. April

    Signed and filed

    Your return is filed and signed. No scrambling to sort hardware markup from support fees after the fact.

  3. July

    Midyear read

    Where you stand, what you will owe, and whether this year's contract renewals held steady or slipped.

  4. October

    Before the budget flush

    Client businesses often spend down year-end budgets on hardware refreshes in the fall. Gus looks at what is worth buying before December.

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 managed service providers. 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 managed service provider owners ask first.

Can Gus tell my hardware margin apart from my support income?

Yes. When an invoice bundles resold hardware with a support fee, Gus splits them so you can see what the hardware markup earned on its own.

I bill everything through ConnectWise. Do I have to change how I invoice?

No. Keep billing the way you do. Gus works from your bank statement, and when a deposit is unclear he asks once and remembers the answer.

A client canceled their contract with almost no notice. Will that show up?

Yes, right away. Gus tracks recurring contract income separately, so a cancellation reads as a clear drop instead of getting buried in the total.

Does Gus handle sales tax on the hardware I resell?

Gus flags hardware sales so you and the accountant can confirm what needs tax collected in your state, but filing sales tax is not part of the subscription.

My books are a mess of distributor invoices and client payments I never sorted. Can Gus start there?

Yes. Send what you have. Gus sorts it, 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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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